Faraday Technology, a fabless ASIC service and silicon IP provider, has expressed optimism about its sales growth in the first half of 2021 driven by robust growth in revenue generated from mass production for ASIC projects.

Faraday saw revenues generated from mass production for ASIC projects decline 4.1% sequentially to NT$920 million (US$33 million) in the first quarter of 2021, due mainly to fewer working days in February during the Lunar New Year period. Nevertheless, a ramp-up in ASIC design-wins and improved customer mix will boost substantially Faraday's overall revenue from mass production for ASIC projects in the second quarter, Faraday indicated.

Faraday also expects sales of its NRE (non-recurring engineering) business to register another sequential growth in the second quarter. The business generated revenue of NT$340 million in the first quarter, up 35.8% compared to the fourth quarter of 2020, while sales of its IP segment grew about 25% on quarter to NT$270 million.

Faraday reported net profit climbed over 600% sequentially and 300% on year to NT$170 million in the first quarter of 2021. EPS for the quarter came to NT$0.68.

Faraday posted revenue of NT$1.54 billion in the first quarter of 2021, up 7.3% sequentially and 21.3% on year, while gross margin rose 2pp on quarter to 48.8%.

United Microelectronics (UMC) and Samsung Electronics are both reportedly Faraday's foundry partners.

Faraday sees 1Q21 profit surge
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