eMemory Eyes Sequential Revenue Growth in Second Half, Q3 Gross Margin to Approach 30%

Taiwanese semiconductor testing and analysis firm eMemory anticipates a strong second half of the year, with revenue expected to grow sequentially. The company projects its gross profit margin to approach 30% in the third quarter, fueled by increasing demand for testing and analysis services in AI, CPO, and advanced manufacturing processes. eMemory's CPO-related solutions are progressing well, with new equipment slated for installation in the third quarter, which will expand its service capabilities.

The company's gross profit margin improved to approximately 26% in the second quarter, a 9 percentage point increase from the previous quarter. This improvement was attributed to a change in accounting for its invested companies to equity method recognition and effective cost control. eMemory is working towards a 30% gross profit margin in both the third and fourth quarters.

Looking ahead, eMemory sees significant opportunities arising from the capital expenditure expansion by packaging and testing plants. These plants are key clients, and their investments in advanced packaging, testing, and overseas production are expected to boost demand for eMemory's verification, analysis, and testing services. The company also has a strategic presence in Malaysia and Singapore to support clients expanding their operations into Southeast Asia.