IC packaging specialist Siliconware Precision Industries (SPIL) saw its net profits fall 30.5% on year to NT$6.9 billion (US$237 million) in 2017. EPS for the year came to NT$2.21 compared with NT$3.19 in 2016.

SPIL's consolidated revenues for 2017 slipped 1.8% to NT$83.55 billion, while gross margin slid 2.6pp on year to 20.1%.

SPIL generated consolidated revenues of NT$21.62 billion in the fourth quarter of 2017, down 2.5% on year and 1.5% sequentially. Gross margin slid to 20.7% from 21.9% in the prior quarter and 23.6% during the same period in 2016.

SPIL posted operating profits of NT$2.32 billion in the fourth quarter of 2017. Operating margin for the quarter reached 10.7%, down 3pp on year and 1.8pp sequentially.

SPIL's net profits decreased 34% sequentially and 47.3% from a year earlier to NT$1.49 billion in the fourth quarter of 2017. EPS for the quarter arrived at NT$0.48 compared with NT$0.72 in the third quarter and NT$0.91 in fourth-quarter 2016.

SPIL's profitability during the fourth quarter was affected by the impact of a strong NT dollar, as well as rising materials costs and falling product ASPs, according to market watchers. The company's performance during the first quarter of 2018 is set to follow seasonal patterns, said the watchers.

In addition, SPIL plans to budget NT$19.2 billion in capex for 2018. The capex will be used to expand its production capacity at its new China-based subsidiary in Fujian, as well as to build additional capacity of its bumping, FCBGA, WLCSP and testing production lines.