(3711-TW)(ASX-US), the leading sealing and testing company, held a press conference on 7/28 and announced its Q2 financial results. Benefiting from the favorable exchange rate, product portfolio optimization, and the benefits of operational integration, gross margin and profitability topped the charts at the same time, with the gross margin surging to 21.4%, and the after-tax net income reaching NT$15.988bn, a quarterly increase of 1.7pp, and a yearly increase of 1.9pp. Net income after tax reached NT$15.988 billion, an increase of 1.7 percentage points quarter-on-quarter and 1.9 percentage points year-over-year. Net income per share was NT$3.69, a record high of NT$6.71 for the first half of the year.

Sun Micron's consolidated revenue for the first half of this year totaled NT$304.83 billion, an annual increase of 23.72%, with a consolidated gross margin of 20.62%, an annual increase of 1.67 percentage points, and a consolidated operating income of NT$36.719 billion for the first half of the year, with a profit margin of 12.04%, an annual increase of 2.27 percentage points. Accumulated after-tax profit for the first half of the year was NT$28.895 billion, an annual increase of 53.5%, and basic net income per share for the first half of the year was NT$6.71, which was better than the EPS of NT$4.37 for the same period last year.

Regarding the view on inventory adjustment, Sun Micron Investment Controls said that although the semiconductor market is undergoing inventory correction, with some areas having more momentum than others and some areas being limited, Sun Micron Investment Controls, with its diversified customer portfolio and manufacturing flexibility, expects to achieve solid performance in the second half of the year, and consolidated revenue will grow quarter by quarter. In terms of production capacity, Sun Micron Investment Holdings said that the back-end of the semiconductor production capacity is in a healthy state, compared to the front-end of the semiconductor, the back-end of the capacity increase is relatively small, in addition to technological changes, including density, multi-chip architecture and production volume expansion, need to be the back-end of the investment.

Observe semiconductor packaging and testing sales, the second quarter communications accounted for about 52%, computers accounted for 16%, automotive and consumer electronics and other proportion of about 32%, the top 10 customers accounted for about 59%, the number of 25,876 units of wire bonding machine, test machine 5,194 units. Sun Micron pointed out that the second quarter of the package testing business revenue growth of 25% compared to the same period last year; Sun Micron investment control chief operating officer Tanyu Wu pointed out that, excluding the impact of the sale of plants, Sun Micron investment control in the first half of the package testing business revenue increased by 25%, of which, the high-end packaging to benefit from the formation of the trend of multi-chip packaging, an annual increase of more than 48%, in the automotive electronics growth is even more significant, the first half of the year, an annual increase of 54%, is expected to increase by 54%. The growth in automotive electronics is even more significant, with an annual increase of 54% in the first half of the year. It is expected that the momentum will continue not only in the second half of this year, but also until 2023 and 2024.