DB HiTek posts record Q2 earnings from foundry demand

South Korean chip foundry company DB HiTek saw its operating profit margin rate reach 30% during the second quarter of 2021 from high demand for its contract chip production services.

The company said on Friday that it recorded 274.7 billion won in sales and 81.4 billion won in operating income during the quarter, an increase of 13% and 6%, respectively, from the previous year.

For the entire first half of 2021, DB HiTek recorded 518.4 billion won in sales and 142 billion won in operating income.

DB HiTek said it saw especially high demand for power management ICs during the quarter.

Its own branded OLED display driver ICs also contributed to the sales increase, the company said.

The company has been operating its two fabs in South Korean at full capacity for over two years now, it said.

As the global chip shortage is expected to continue and the firm is seeing high demand from customers, it expects to record growth throughout the remainder of the year, DB HiTek said.

It will operate its fabs flexibly and improve equipment in them to meet customer demand, while launching new products such as next-generation chips, RFs and sensors, it added.