Chip packager Siliconware Precision Industries (SPIL) saw consolidated revenues total NT$15.48 billion (US$530 million) in the fourth quarter of 2010, down 5.1% sequentially and meeting the low end of market watcher estimates. Weaker-than-expected demand from IC designers and a strengthened NT dollar were among the factors to drag down results.
SPIL turned in NT$5.31 billion in December consolidated revenues, up 3.4% sequentially. Consolidated sales for the whole of 2010 were NT$63.86 billion, rising 7.7% on year.
SPIL expects sales performance for January and the next two months to be similar to the monthly level reached in the fourth quarter. Without considering currency exchange rate fluctuations, SPIL's revenues are likely to drop by less than 5% sequentially in the first quarter of 2011.
SPIL has fallen behind fellow packaging company Advanced Semiconductor Engineering (ASE) in copper-wire bonding processes, and also in terms of financial performance due to an unfavorable customer mix. SPIL has been affected by inventory adjustments at major client MediaTek since the second half of 2010, and growth in IDM orders also appeared less impressive than those of ASE.
ASE has seen orders from IDM clients, including Qualcomm, Broadcom, Infineon and Marvell, generate almost 40% of revenues. However, only 15% of SPIL's sales come from the IDM segment.