Advanced Semiconductor Manufacturing Corp, a Chinese chipmaker partly owned by Royal Philips Electronics NV, posted a first-quarter profit, compared with a year-earlier loss, driven by a rise in sales to Europe.

 

Net income was 12.1 million yuan (US$1.5 million), or 0.01 yuan a share, compared with a net loss of 16.2 million yuan (US$2.03 million), or 0.01 yuan a share, a year earlier, the company said on Wednesday night in a statement to the Hong Kong Stock Exchange, citing international accounting standards.

 

Sales rose 56 percent to 318.8 million yuan (US$39.9 million) from 204 million yuan (US$25.5 million).

 

Advanced Semiconductor's profit was boosted by a 140 percent rise in sales to Europe to 77.9 million yuan (US$9.74 million) from 32.4 million yuan (US$4.05 million) a year earlier.

 

The Shanghai-based company, founded in 1988 as Philips Semiconductor Corp, makes chips designed by companies such as Philips, Europe's largest consumer electronics maker, and Jazz Semiconductor Inc based in Newport, California.

 

"Having an investor like Philips means Advanced Semiconductor has a stable base of customers," Zhao Yazhou, an analyst with Analysys International in Beijing, said before the earnings were announced.

 

Advanced Semiconductor Manufacturing said in March that it expected to break even for the first six months of this year.

 

It had an annual loss of 75 million yuan (US$9.38 million) in 2005 on sales of 931.6 million yuan (US$116.45 million).

 

(China Daily May 12, 2006)