Semiconductor packaging sector sees rising profit growth in first three quarters

Source: Global Times Published: 2020/11/4 17:39:55

A worker at a semiconductor firm based in Chizhou, East China's Anhui Province Photo: VCG

Nearly 70% of listed semiconductor companies in China have seen growth in net profit year-on-year in the first three quarters of 2020, according to data service platform Wind, which shows that the industry has rallied at a faster-than-expected pace since the country largely controlled COVID-19, particularly the semiconductor packaging segment.

Jiangsu Changjiang Electronics Tech Co, an industry leader in the packaging and testing sector, saw total revenue of 18.76 billion yuan ($2.8 billion) in the first three quarters of this year, a year-on-year increase of 15.85 percent, with a net profit of 764 million yuan. 

Also, Nantong Fujisu Microele saw net profit rise to 260 million yuan in the first three quarters, surging 198.88 percent compared with the same period last year. Its third-quarter profit came to 150 million yuan, a surge of 1,057.95% from a year earlier.

Industry analysts said that the rebound of chip manufacturing transmitted to the downstream sectors from the fourth quarter of last year, particularly the packaging and testing segment.

Strong demand for data centers, testing and measurement equipment as well as 5G base stations led the boom in the semiconductor industry, and China has the most development potential in the semiconductor sector as the country has effectively brought COVID-19 under control, said analysts. 

"There is no doubt China will establish and improve the whole industry chain in the next five years with huge investment injected into the industry," Xiang Ligang, director-general of the Beijing-based Information Consumption Alliance, told the Global Times on Wednesday.

Currently, many listed companies have been raising money to further develop the semiconductor packaging modules.

In August, Changjiang Electronics announced a non-public offering of 5 billion yuan to raise funds partly for high-density integrated circuit and system-in-package module projects, and high-density hybrid integrated circuit and module packaging projects for communications.

According to data released by industry research organization Gartner, the semiconductor market can reach a gross revenue of $432.9 billion in 2020, an increase of 3.3 percent over last year. The figure is $35 billion lower than its previous projection for 2020, as the semiconductor industry like packaging and testing factories were heavily impacted due to the COVID-19 pandemic. 

Global Times


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