Win Semi, VPEC to post brisk 2Q17 results

GaAs IC foundry Win Semiconductors and epi-wafer supplier Visual Photonics Epitaxy Company (VPEC) are set to enjoy brisk sales in the second quarter of 2017 as customers roll out new products while sales generated from the optical communication sector bring in new revenues, according to market sources.

Win Semi reportedly has entered the supply chain for Apple's iPhone through providing foundry services for related suppliers of power amplifiers (PAs). With shipments for the new iPhone set to kick off prior to its September launch, Win Semi is expected to see its revenues start picking up in the second quarter, said the sources.

In addition, revenues generated from the optical communications field are expected to be key driving Win Semi's revenue growth in 2017, the sources noted. Win Semi entered production for optical devices at the end of 2016 with monthly production capacity estimated at 5,000 wafers, said the sources, adding that the company's monthly production capacity will expand substantially after the second quarter of 2017.

Win Semi saw its 2016 revenues hit a record high of NT$13.61 billion, and net profits for the first three quarters of the year already exceed those for all of 2015.

VPEC, Win Semi's upstream supplier, will also benefit from Win Semi's expanding business, the sources indicated. Win Semi's entry into the optical communication sector will make a positive contribution to VPEC's gross margin and profitability, the sources said.

VPEC has reported revenues surged 26.8% sequentially to NT$157.9 million in January 2017. VPEC's revenues declined 8.8% on year to NT$2.18 billion in 2016.