Lite-On Semiconductor's board of directors has approved plans to distribute a cash dividend per share of NT$1.60 (US$0.06) for 2017 when it reported NT$1.80 in EPS.

Lite-On Semi's non-operating income was affected by a one-time charge of about NT$180 million related to the US tax reform incurred by Diodes, in which it holds a stake. Nevertheless, impressive operating profits enabled the Taiwan-based maker of discrete and analog IC components to enjoy net income growth in 2017.

Lite-On Semi's consolidated revenues increased 10% on year to NT$11.51 billion in 2017, while operating profits climbed 27% to NT$1.32 billion. Net profits for the year surged 29% to NT$558 million, with EPS growing from NT$1.40 in 2016.

Lite-On Semi's discrete ICs, IC products and modular systems all enjoyed on-year revenue and profit growth in 2017, the company disclosed. The modular systems segment had the best performance during the year with on-year increases of 19% in revenues and 1,750% in profits.

Lite-On Semi's 6-inch foundry business suffered declines in both revenues and profits in 2017, the company said.

Looking into 2018, Lite-On Semi has warned of rising wafer and raw materials costs that may drive up its production costs. Meanwhile, volatile foreign exchange rates and tax increases are other challenges the company will have to encounter during 2018.

Lite-On Semi expects to enjoy another year of revenue and profit growth in 2018, when the global semiconductor industry is forecast to increase 5-8%.