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Semiconductor material distributors remain upbeat about demand

Despite a recent cutback in demand for large-size display driver ICs, Taiwan-based IC material distributors remain upbeat about the overall demand that will buoy their sales performance this year, according to market sources.

Topco Scientific, Topco Technologies and Wahlee Industrial, and IC packaging material distributors Chang Wah Electromaterials (CWE) and Niching Industrial are all expected to generate record-high revenues in 2021, as the overall semiconductor demand has been robust, said the sources.

Wahlee, which sells materials for high-frequency and high-speed substrates and front-end manufacturing materials such as photoresists, CMP slurry and electron-grade chemicals, is poised to see its revenues and profits hit new highs in 2021, the sources indicated.

Wahlee has reported net profits of NT$842 million (US$30.3 million) on record revenues of NT$18.76 billion for the third quarter of 2021. EPS for the quarter came to NT$3.57, also a record high. Wahlee saw its net profits for the first three quarters of 2021 surge 46.4% from a year earlier to NT$2.08 billion, with EPS reaching NT$8.81.

CWE also generated record-high revenues and profits in the third quarter of 2021, thanks to continued strong shipments of epoxy resin and leadframes for wire-bonding packaging, the sources said. Niching, another IC backend material distributor, is expected to post a 20-30% profit hike on year in 2021 with revenue hitting a record high, according to the sources.