iST April 2018 Revenue Report

iST(TWSE:3289) today (May 10, 2018) announced its net revenues on a consolidated basis, the revenues of April 2018 were approximately NT$279 million. The consolidated revenue increased 5.60 % MoM and increased greatly 23.73 % YoY, which has reached a second highest level.

iST said, despite of the less working days coincided with the tomb sweeping holiday, the revenues of April still hit a second high in the history due to the growing profitability generating by iST’s new extending capacity with orders continuously from international customers, including verification services of Automotive Electronics, Signal Integrity and the Advanced Process in Semiconductor Manufacturing. In addition, the significant increasing case-in quantity of iST’s subsidiary in China in Reliability and Failure Analysis has also driven iST’s revenues in April, 2018.

iST further indicated of the market in Mainland China. Since China government greatly support its semiconductor industry in recent years to rise up its self-sufficiency rate. According to statistics of China semiconductor industry association, the sales volume of China Integrated circuit industry was RMB¥ 541.13 billion in 2017, which was increasing 24.8 % year over year. Yet China’s homegrown chip industry has growing very fast, its self-sufficiency is only 30%. According to SEMI, the gap between supply and demand will reach USD$88 billion in 2019.

iST mentioned the recent trade war between China and the United States. The U.S. government has imposed sanctions on China’s telecom company, and prohibited U.S. makers from providing relevant IC to China’s. When the development of semiconductor industry elevated to the national strategic level, China’s semiconductors are facing an immediate emergency to increase its self-sufficiency rate, which has made China government put more efforts in supporting R&D of its semiconductor industry. Based on this scenario, there shall be more demands for Failure Analysis and Reliability Assurance to improve products’ yield and quality, hence, iST expects this will be a benefit for its verification business in China.

About Integrated Service Technology

Founded in 1994, iST began its business from IC circuit debugging and modification and gradually expanded its scope of operations, including failure analysis, reliability verification, material analysis and so on. iST has offered full-scope verification and analysis services to the IC engineering industry, its customers cover the whole spectrum of the electronics industry from IC design to end products.

In response to rising Cloud Intelligence, Internet of Things (IoT) and Internet of Vehicles (IoV), iST not only focuses on its core services but is also expanding its service offerings based on international trends, such as Automotive electronic verification platforms and signal integrity testing services. http://www.istgroup.com