MI: Technology Firm Reports Robust Earnings, Projects Strong Growth

Strong Quarterly Performance Fuels Optimism

A leading technology firm has announced a robust quarterly performance, with management projecting a significant 15-20% sales growth for the financial year 2026 (FY26F). This optimistic outlook is fueled by strong contributions from its Semiconductor Equipment Business Unit (SEBU) and Semiconductor Material Business Unit (SMBU), driven by the increasing adoption of advanced packaging technologies.

Segmental Growth Highlights

The company’s third-quarter FY25 results highlighted remarkable growth across its segments. The Semiconductor Equipment Business Unit (SEBU) saw a substantial 97% year-over-year sales increase, primarily due to heightened demand for its Mi Series Die Sorter machines, particularly in the Mobility & Wearables sectors. The Mi Quantum product, featuring AI capabilities, was a significant contributor, with 45 units delivered. While most operating units contributed positively, the Mi Equipment Korea segment reported a minor loss.

Meanwhile, the Semiconductor Material Business Unit (SMBU) recorded a 12% year-over-year sales growth. This was largely propelled by strong demand from Mobility & Wearables (61%), HPC & Memory (31%), and Automotive & Renewable Energy (8%). High-margin patented solder balls, including Cyclomax, ISAC, and AT35U, accounted for over 58% of sales. The Accurus China unit significantly narrowed its losses, contributing positively to overall performance, while Accurus Taiwan generated a notable profit. The Semiconductor Solution Business Unit (SSBU), however, remained loss-making as its MiSE Hangzhou operation is still in the sample submission stage.

Strategic Investments and Future Outlook

Looking ahead, the firm is making strategic investments to bolster its future growth. A new solder ball plant in Johor Bahru is underway, with a RM40 million capital expenditure allocation. This facility is planned to have a total capacity of 210 billion pieces per month across two phases, with commercial operations expected to commence by early 2027. The plant will focus on both conventional and patented solder balls, supported by key Taiwanese customers.

Operational efficiencies and strategic initiatives are also expected to drive improvements across other subsidiaries. Accurus Taiwan is currently operating at maximum capacity, while Accurus China is anticipated to experience a surge in loading volume next month following a new qualification, potentially breaking even in the fourth quarter and contributing positively in FY26F. Efforts are also underway to narrow losses at Mi Korea by transferring bonding machine processes. Furthermore, the SSBU is projected to deliver significant sales contributions from 2027, driven by the rollout of high-power semiconductor devices for industrial and commercial vehicle sectors. The overall prospects remain strong, underpinned by expanding market share in Mi Series equipment and its leadership in high-margin patented technologies.