According to a recent research report from the US Department of Foreign Investment, A&M Capital holds the position of the world’s largest sealing and testing plant, which includes approximately 30% of global industrial revenues and approximately 40% of profits; optimistic about profitability in the second half of the year, mainly due to three reasons:
1. The rising market share of Sun Moonlight's investment and control customers, together with its foothold in memory, is expected to boost the growth of the market.
2. The cost synergy will be realized after the merger with silicon products, which will help improve operating profitability.
3. Obtaining Apple's System-in-Package (SiP) project orders also stimulated the rapid growth of Electronic Foundry Services (EMS) in the second half of the year.
The company announced its first-quarter financial report before the merger, with NT$2.096 billion in net profit after tax. It hit a new single-quarter low in six years, and its profitability was lower than expected. It was seen as the main cause of the impact on Sun Moonlight's investment control listing. Dong Hongsi, Group Chief Financial Officer, believes that. The 1st quarter has always been the traditional off-season of industry. The decline in performance was slightly better than in previous years. However, due to the appreciation of the NT, the loss on derivative foreign exchange resulted in a decline in the number of profits. It is expected that the momentum of growth will resume in the second quarter.
According to the foreign-funded circle, after the combination of Sun Moonlight and silicon products, the market share reached 30%, which helped relieve the intense competition and price pressures of the industry. At the same time, Sun Moonlight’s long-term close partnership with TSMC has jointly developed fan-out wafer-level packaging. Advanced packaging and testing processes such as system-level packaging have led the industry and have achieved competitive advantages in the global semiconductor market.