Networking chip supplier Realtek Semiconductor Corp (瑞昱半導體) yesterday posted a record high net profit for the first quarter of the year, as exuberant demand for chips used in commercial PCs and Internet infrastructure offset slack demand for consumer electronics and chromebooks for students.
The Hsinchu-based chipmaker expects the uptrend to extend into this quarter, despite COVID-19 lockdowns in China that have snarled logistics and halted factories’ operations.
“Overall, demand looks very resilient in the short term. We are cautiously optimistic about the second quarter,” Realtek spokesman Huang Yee-wei (黃依瑋) told an online investors’ conference.
The company is seeing strong growth momentum for its
Realtek Semiconductor Corp (瑞昱半導體) yesterday posted record high net profit for last year after gross margin climbed to surpass 50 percent, supported by strong demand for its chips across the board, from Ethernet switches to Wi-Fi chips, as the work-from-home and online-learning trends stimulated broad infrastructure upgrades.
Net profit soared 91.7 percent to NT$16.85 billion (US$605.29 million) last year, compared with NT$8.79 billion in 2020. That translated to earnings per share of NT$33, up from NT$17.24.
Gross margin jumped to 50.4 percent last year from 42.8 percent in 2020, as Realtek opted to supply higher-margin products amid ongoing semiconductor supply constraints.
Revenue swelled
Realtek optimistic about demand
CAUTION: While demand for its networking chips is robust, an industrywide capacity shortage could affect shipments, with no relief in sight, the chip designer said
By Lisa Wang / Staff reporter
Networking chip designer Realtek Semiconductor Corp (瑞昱半導體) yesterday said it is positive about market demand for the rest of this year, but an industrywide supply chain capacity shortages could cap shipments.
Demand for the company’s chips, which are used in Ethernet routers, Wi-Fi, Bluetooth and switches, has shown strong growth momentum, RealTek said.
Those networking chips are used in PCs, access point routers, broadband, wireless earbuds and other applications, as work-from-home and distance-learning trends due to the COVID-19 pandemic are stimulating a broadband infrastructure upgrade, Huang said.
Realtek says chip demand should continue growing
‘CONFIDENT’: While COVID-19 has caused demand for PCs and home routers to rise, it has also resulted in an upgrade in overall infrastructure, the company said
By Lisa Wang / Staff reporter
Networking chip designer Realtek Semiconductor Corp (瑞昱半導體) yesterday said that there has been healthy demand for Ethernet switch and Wi-Fi chips through the first half of this year, as the work-from-home and distance-learning trends are stimulating a broad infrastructure upgrade.
Realtek said that growth momentum is extending from last year as the trends are here to stay amid the COVID-19 pandemic this year.