Hanmi Semiconductor is expected to post record third quarter sales thanks to its supply to Skyworks Solutions, a vendor of 5G chips to Apple.
The South Korean semiconductor equipment maker is expected to post sales of around 70 billion in the third quarter, according to South Korean analysts.
Hanmi posted sales of 101.5 billion won in the first half of 2020. The company’s full year sales for 2019 was 120.9 billion won.
It will likely beat its past record of 217.1 billion won in full year sales in 2018 this year.
South Korean analysts are also expecting operating margin rates of over 30% for 2020.
Hanmi is seeing strong sales in its electro magnetic interference (EMI) shield equipment. The kit is being used more thanks to expansion of 5G smartphones. EMI is used to block electromagnetic waves from chips from interfering with other components in devices.
Hanmi launched its first EMI shield equipment back in 2016.
Skyworks accounted for 41% of Hanmi’s sales for the first half of 2020. The pair signed five contracts this year __ the South Korean equipment maker won orders worth 28.5 billion won in total.
Skyworks is supplying Apple with telecom chips for use in iPhones as well as tablets and notebooks. Cupertino accounted for 47% of Skworks’ 2019 sales.
Equipment maker customize their kits for their customers __ the contracts for equipment that will be used is usually signed six months prior to being deployed.
Skyworks will likely use the EMI equipment purchased from Hanmi this year for the iPhone 13 series launching next year. Apple has offered 5G for the first time with the recently launched iPhone 12 series.