UMS Holdings profit soars 97% to $13.4m in Q3
Thanks to strong demand in its semiconductor business.
UMS Holdings profit increased 97% YoY to $13.4m in Q3 due to robust customer demand for its semiconductors.
According to its press release, semiconductor sales rose 52% YoY to $39.33m in Q3 due to a proliferation of connected devices required by automotive, medical, wearable and high-performance computing applications.
Other segments also performed well with sales from its semiconductor integrated system sales rising 61% YoY to $20.3m in Q3 and component sales growing by 44% YoY to $19m.
However, increased production levels caused higher overall expenses to rise 13% which was slightly offset by 23% depreciation expense.
DBS Research forecasts that UMS Holdings’ strong growth is likely to be sustained in light of SEMI’s 2017 World Fab Forecast which expects fab equipment spending to increase by 37% for an annual spending record of $74.84b (US$55b).
“This augurs well for UMS given its primary role in the manufacture of components for various semiconductor equipment and that it handles c.70% of manufacturing and assembly for Applied Material’s Endura deposition system – especially given the successful extension of the Endura contract,” said Carmen Tay of DBS Research.