Packaging and Testing Enterprise Performance:Finance Statement Analysis

• Main Authors: LI, PING-CHUNG, 李萍鐘
• Other Authors: CHEN, DAR-HSIN
• Format: Others
• Language: zh-TW
• Published: 2016
• Online Access: http://ndltd.ncl.edu.tw/handle/10535767925195148816

碩士 === 國立臺北大學 === 企業管理學系碩士在職專班 === 104 === Semiconductor industry in Taiwan has developed into a complete supply chain with upstream IC design houses, midstream wafer fabrication, and downstream packaging and testing manufacturing. This vertically integrated industrial chain not only satisfies trend demands, but also creates competitive advantage for semiconductor enterprises in Taiwan. High capital expenditure required in advanced semiconductor backend process pressured global IDMs and IC design companies to outsource semiconductor manufacturing needs to regions with lower production cost, such as Asia. A complete and dynamic vertical specialization and trade integration makes vendors in Taiwan the top choice for international IDM and IC design companies. Packaging and testing plants in Taiwan also benefited from IDM outsourcing orders as part of the supply chain. Accordingly, Taiwan's top five packaging and testing plants enjoyed steady revenue growth in the last decade during 2006-2015: 1.82 times growth in Advanced Semiconductor Engineering (ASE), 0.45 times in Siliconware Precision Industries Co., Ltd.(SPIL), and 1.51 times in Powertech Technology Inc. (PTI). ChipMOS Technologies maintained its revenue while Chipbond Technology Corporation (Chipbond) tripled its revenue to 3.08 times. The top five packaging and testing plants generated a staggering total of NTD$304.9 billion in profit. This study aggregated past data and article of ASE, SPIL, PTI, ChipMOS, and Chipbond, including financial structure, solvency ratios, management strategies, profitability, cash flow, leverage to conduct financial analysis. The data were analyzed and compared to evaluate operational and financial performance of the five companies. In the end, the study also suggested future improvement measures for PTI. In conclusion, the five testing and assembly houses in this study appears to have conservative financial structure, solvency ratio, management strategies, profitability, cash flow, leverage and other financial ratios, which minimizes risk for financial crisis. PTI needs to pay attention to its revenue: ASE earned 6.67 times more than PTI in 2015, and SPIL also earned 1.95 times more than PTI. There’re still much to be improved for PTI in terms of revenue scale. The other issue is profitability: The average profit margin of the 5 plants ranges between 22-23% in year 2006 to 2015. However, the 28% gross margin of PTI during year 2006 to 2010 decreased to 18% from year 2011 to 2015 mainly because its existing major customers withdrew from market and directly impacted PTI’s production utilization rate. In order to acquire orders from new customers, PTI aggressively formed alliance with Micron to set up a factory in Xi'an, mainland China. In addition, PTI introduced Tsinghua Unigroup as the new major shareholder to invest in PTI. Through the strategic investment of related semiconductor companies within the group to stabilize customer- base, to form vertical integration, to develop the market altogether, and to increase technical efficiency in packaging and testing. It is likely that PTI will consolidate its position of the semiconductor industry chain in mainland China because of the long-term strategic relationships between these 2 companies. The study takes an optimistic but reserved attitude towards a steady growth in PTI’s revenue and gross margin in the future.