MAINBOARD-LISTED semiconductor company UMS Holdings : 558 0% reported a 42.4 per cent fall in net profit to S$11.6 million for the three months ended Jun 30, 2023, from S$20.2 million over the same period a year earlier.

Revenue fell 14.1 per cent to S$74.4 million over the same period, from S$86.6 million a year earlier.

In its bourse filing on Monday (Aug 14), the company attributed the fall in revenue to weaker performances of both its semiconductor and “others” business segments, while its aerospace segment saw improved sales.

Its “others” business segment includes the manufacture of water disinfection systems, trading of non-ferrous metal alloys and cutting tools.

In particular, its semiconductor segment saw revenue fall 14.3 per cent for the quarter year-on-year (y-o-y) to S$64.8 million.

“The decline in semiconductor revenue was due to a 29 per cent drop in component sales, from S$43.6 million in Q2 FY2022 to S$31.0 million in Q2 FY2023, caused mainly by the weaker demand from backend semiconductor customers,” the company said.

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For the half-year ended Jun 31, 2023, UMS saw net profit decline 26.7 per cent to S$29 million y-o-y as revenue declined 9.5 per cent to S$155.1 million.

UMS chairman and chief executive Andy Luong said that while near term conditions for the semiconductor industry may remain cloudy, he expects the industry’s mid to longer-term prospects to brighten.

“Moving into the third quarter of 2023, there are signs that demand may stabilise. Our key customer has shared (that) it expects to outperform its markets this year and we are delighted that we have successfully renewed our integrated system contract until end-2025,” he said.

“Our strong financial standing and new Penang facilities will also position the group to take on new orders from potential new customers which are expanding in South-east Asia,” Luong added, noting that several semiconductor equipment makers have announced multi-billion-dollar expansion plans in Singapore and the region.