Driver IC maker Allwinner (3034) held a press conference on 8/5, and due to the impact of worsening global inflation and the rapid cooling of demand for consumer electronics products caused by the epidemic, the company failed to meet its Q2 financial forecasts, with consolidated net operating income of NT$31.461 billion, a quarterly decrease of 13.83%, and a yearly decrease of 7.77%. In the face of the drastic slowdown of operating performance, Shou-Jen Wang, also in rare times, shouted out with confidence, emphasizing that Allwinner He emphasized that the company's physique and technology had not changed, and that he was confident that after corrections, the company's revenue could still return to the right track.

We share the same difficulties and discuss with UMC and other foundries.

Wang Shouren explained that the second quarter financial report has been estimated, and the gross margin for the third quarter has also been taken into consideration. We will discuss with suppliers and hope that we can share the difficulties together, so that costs can be reflected quarter by quarter and the decline in gross margin can be slowed down.

Enhancing Technology to Cope with the Rise of Chinese Competitors

Lianyong emphasized that through technology enhancement, Lianyong aims to become a competitive total solution provider and will expand its cooperation with foundries in the future.

New specification drive contributes to medium to long term gross margin trend

Shouren Wang believes that the trend of high resolution in TV system SoC continues, the driver IC part has also cut into TDDI products such as NB, OLED, automotive, etc., and AR/VR driver ICs can also be expected, and customized ICs (ASICs) will also have considerable development, driven by new specifications, which will also contribute to the medium- and long-term gross profit margins.

Regarding the third quarter financial forecast, Lianyong said that due to the simultaneous inventory adjustment of Lianyong's three major product lines, including TVs and mobile phones, the third quarter outlook for consolidated revenue is expected to be between NT$19.1 billion and NT$20.3 billion, with a decrease of NT$32% to NT$39%, and the gross margin is expected to be between NT$42% to NT$44%, while the operating profit margin is expected to be between NT$23% and NT$25%. Operating profit margin is expected to range from 23% to 25%.