Fabless chip firm Abov said on Wednesday that it recorded 45.57 billion won in revenue and 5.256 billion won in operating in the third quarter.
Revenue dropped 20% from the prior quarter.
The company specializes in microcontroller unit (MCU) which was in short supply during the pandemic.
Demand surpassed supply in MCUs used in automobiles and the shortage was especially noticeable last year up to the first half of 2022. According to analyst firm IC Insights, MCU’s average sales prices increased 12% year-on-year last year.
They were also in high demand for home appliances, where the majority of Abov’s revenue comes from.
But their shortage has somewhat started to ease this year and this may be causing the revenue drop, analysts said.
Abov had recorded 11.92 billion won in revenue during the first half of this year, up by 56.1% from the same time period a year ago.