TAIPEI–MStar Semiconductor Inc., one of Taiwan’s leading integrated circuit designers, said Saturday that its net profit for the second quarter rose almost 20 percent from a quarter earlier on solid global demand for TV chips.
During the April-June period, MStar posted NT$1.27 billion (US$42.2 million) in net profit, up 19.77 percent from the first quarter, with earnings per share at NT$2.05.
In the second quarter, MStar’s consolidated sales rose 5.4 percent from a quarter earlier to NT$8.23 billion on the back of an increased number of working days in the three-month period.
MStar said that as sales grew, its gross margin for the second quarter stood at NT$45.02 percent, up 1.79 percentage points from a quarter earlier, the IC designer.
MediaTek Inc., another Taiwanese IC designer, bagged more than NT$600 million in Q2 returns from its investments in MStar.
During the same period, MediaTek, a smartphone and tablet chip designer, posted an almost 80-percent sequential increase in net profit totaling NT$6.72 billion thanks to the rising popularity of mobile devices in the global market.
MediaTek has been planning a merger for fully bringing MStar under its umbrella, after having completed a tender offer in August 2012 to acquire a 48-percent stake in MStar.
However, the proposal has been repeatedly blocked, as China has voiced opposition, citing anti-trust concerns.
MediaTek Chief Financial Officer David Ku said his company remained upbeat about the merger plan, and would continue to communicate with Chinese authorities on the issue.