iST Reports Q2 2023 EPS of NT$2.02, YoY 65.57%, the Highest in 13 Quarters

iST said, despite a sluggish consumer electronics market in Q2, with a slight slowdown in the pace of research and development by consumer electronics clients, and factors such as inventory reduction efforts by subsidiaries of iST, iST observed strong growth trends in verification analysis applications in areas such as automotive electronics and artificial intelligence (AI). This drove the demand for iST’s materials analysis (MA), failure analysis (FA), and reliability assurance (RA) services, as well as improved profitability for associated companies like DEKRA iST. As a result, consolidated revenue, operating gross profit, and operating net profit for the Q2 of 2023 significantly increased compared to the same period last year (YoY).

Furthermore, in Q2 2023, iST achieved a record-high net profit attributable to the parent company of NT$151 million, marking the highest for the second quarter in history. The EPS after tax also reached a new high in nearly 13 quarters, reflecting iST’s strong operational performance during this period.

iST noted that the consumer electronics market, particularly the smartphone market, continues to face a sluggish environment, with lingering inventory adjustments expected to persist into Q3 and Q4. This has led to noticeable R&D slowdown among smaller semiconductor companies. However, some leading large-scale enterprises are still actively engaged in research and development, primarily focusing their resources on automotive electronics and AI.

iST emphasized that the automotive electronics sector, including areas such as display driver ICs, Ethernet chips, and Bluetooth chips, has been a strategic focus for consumer IC design houses, who have made substantial investments in these fields due to the clear and promising demand in recent years.

Moreover, the development of high-performance computing (HPC) and cloud computing in the AI field remains steadfast, driving the demand for substantial training computing power and accelerating the application of generative AI. This, in turn, injects vitality into the sluggish consumer electronics market and fuels the demand for advanced packaging, particularly relying on heterogeneous integration technology which need to overcome heat dissipation issues to improve yield.

Looking ahead, although the consumer electronics market’s outlook remains uncertain in the second half of the year, iST will leverage its close collaboration with international IDM giants, IC design houses, wafer foundries, and OSATs across the electronic industry’s upstream, midstream, and downstream sectors. By maintaining a competitive advantage in automotive electronics and AI, iST aims to provide customers with high-quality verification and analysis solutions, ultimately achieving sustained growth for iST business.

iST’s 2023 Q2 consolidated results

(Unit: NT$ thousands, except EPS)

PS: The above figures are self-reported statements and have not been audited by an accountant.