BEST SMALL CAP COMPANY
Himax Technologies
Many Taiwanese technology companies have impressed over the past few years. This year it’s the turn of Tainan-based corporate Himax Technologies in the small cap space.
Himax, a semiconductor solution provider dedicated to display imaging processing technologies, has been getting a lot of attention lately due to the fact that Google announced in July that it would purchase preferred shares in subsidiary Himax Display. The purchase gives the US-based search engine company a 6.3% stake in the unit, and up to 14.8% if it exercises the options on the shares in full.
The investment is being used to fund production upgrades, expand capacity and further enhance production capabilities at Himax Display’s facilities. They are already pretty impressive, boasting the ability to make approximately 200,000 units per month for liquid crystal on silicon (LCOS) chips and modules used in applications including head-mounted swanky displays such as the much talked-about Google Glass.
The Google Glass displays information in a smart phone-like hands-free format that can interact with the internet via natural language voice commands.
Himax's tie-up with Google is an exciting development. Don’t be surprised to see more big announcements further down the line.
BEST MEDIUM CAP COMPANY
Novatek Microelectronics
The slowdown in PC demand and the increasing popularity of smart phones and media tablets have prompted some Taiwanese integrated circuits (IC) design houses to switch their attention to mobile products. Novatek Microelectronics is one.
Novatek remained the largest Taiwan-based supplier of liquid crystal displays (LCDs) driver ICs in the second quarter of 2013, with revenues generated from its LCD driver IC business reaching around TWD9.16 billion (US$306 million). In fact, about 83%-84% of the company’s total revenues are generated from this business.
“Novatek is an example of a company that is very focused in the mobile display and large panel display industry,” says a Hong Kong-based equity analyst covering the Taiwanese technology sector. “It has been very discipline in executing its strategies and has even expanded into the global sphere.””
Founded in May 1997 and formally known as UMC Commercial Product Division, Novatek specialises in the research and development (R&D), design, manufacture management, and sale services of ICs. It has since its inception been accurately capturing industry trends and actively engaging itself in product line transformation.
Year-on-year Novatek Microelectronics grew revenues by 5.58% from TWD35.07 billion for 2011 to TWD37 billion last year, while net income improved 20.09% from TWD3.70 billion to TWD4.44 billion, respectively.
BEST LARGE CAP COMPANY
TSMC
The world’s largest wafer foundry, Taiwan Semiconductor Manufacturing (TSMC), aims to maintain its technological leadership globally, as well as its position as Asiamoney’s best managed large-cap corporate in Taiwan.
In fact, TSMC surpassed Intel to become the world’s largest semiconductor supplier in the second quarter of the year. This is because the company’s final market value – the amount paid by end customers for its ICs made in its fables – exceeded the American semiconductor chipmaker’s by a substantial margin.
It’s making a lot of money too. TSMC’s revenue expanded 9% annually last year to US$14.53 billion, outpacing the contract chip making industry’s 5% growth. And its prospects are good too, thanks to stable media tablet and mobile phone sales. Nomura Securities said in July that it expects TSMC to continue benefiting from orders from Apple, which is expected to unveil a new iPhone and iPad later this year.
TSMC’s net profit for the quarter reached TWD51.8 billion, a 23.8% increase from TWD41.8 billion in the same period a year earlier.
BEST EXECUTIVE
Ming-Kai Tsai, chairman, MediaTek
TSMC chairman Morris Chang is a perennial favourite for this award, but this year Asiamoney plumped for an executive of similarly senior stature.
Ming-Kai Tsai, chairman of MediaTek is the brains behind the semiconductor design company, which specialises in manufacturing chips for DVDs, TVs and wireless communications.
Known as the ‘godfather’ of Taiwan’s IC design, Tsai was one of the founding management team when MediaTek spun off from foundry United Microelectronics in 1997 and has been chairman of the company since. Under his leadership MediaTek enjoyed substantial growth.
“MediaTek is largely correlated to China emerging market story,” says a Hong Kong-based equity analyst. “Tsai founded the company and really redefined this whole business – the ability to put out a full working preference design with their chips and bring small companies into the business. He’s done a phenomenal job.”
During the April-June period, the IC designer posted TWD6.72 billion in net profit, up 79.8% from a quarter earlier, while its earnings per share (EPS) for the three-month period stood at TWD5.01, up from TWD2.79 recorded in the first quarter.