AIC ... Jun 09

Semiconductor manufacturer AIC Corporation Bhd is looking at expanding its capacity amid a recovering semiconductor industry to keep up with growing demand for its products.

AIC was looking at spending some RM10 million for the semiconductor division for FY09. The division spent about RM8.7 million last year.

The additional capex would go into installing new lines and equipment to expand the manufacturing capacity for its quad flat non-leaded (QFN) package by 50%. The QFN is its fastest-growing product and was the biggest contributor, of about 30%, to FY08’s revenue of RM126.472 million. Net loss for FY08 doubled to RM7.36 million from a net loss of RM3.08 million in FY07.

Financial Results …

For the first quarter ended March 31, 2009 (1Q09), its net loss narrowed marginally to RM1.931 million from RM1.936 million a year earlier. Revenue slipped 25% to RM23.074 million from RM30.719 million a year earlier.

This was due to the decline in revenue contribution from the semiconductor division, which resulted from a weak overall demand caused by the economic downturn. The slide was partly offset by the revenue contribution from the precision tooling and automation division, which was acquired in the fourth quarter last year (2008).

Notwithstanding the current economic crisis, AIC Group has been a loss-making company since 2003.