ELECTRONICS manufacturer Integrated Micro-Electronics Inc. (IMI) reported $ 357 million in revenue in the second quarter of 2022, a 7% increase over the first quarter of 2022 and a 12% year-over-year increase for first half of 2022.
The slow recovery of the component shortage at the sector level was further exacerbated by inflationary pressures, the shortage of skilled labor and the depreciation of the foreign currency against the US dollar. These headwinds impacted IMI’s growth margins as the company posted a net loss of $ 3.5 million for the quarter.
The strength of the US dollar in the second quarter also impacted the financial results of their European and Chinese manufacturing businesses which mainly recorded contracts in currencies other than the US dollar.
IMI’s wholly owned subsidiaries managed to remain profitable and supported the quarter-over-quarter sales recovery of $ 290 million, up 12% from the first quarter of 2022.
Non-wholly owned subsidiaries, on the other hand, fell 11% quarter-over-quarter to $ 67 million in revenue as they continue to be impacted by component shortage issues.
“Various macroeconomic challenges continue to affect the entire electronics manufacturing sector. Our management teams around the world have worked diligently to mitigate their effects on our business and ensure we are well positioned to maintain IMI’s growth trajectory.” , said IMI president Jerome Tan. “By expanding our supply chain network and increasing regional access to components, we aim to reduce raw material costs and minimize reliance on expensive freight services. And as the business environment begins to normalize, we intend to maintain our streamlined structure and further improve the efficiency of our operations, “he added.
IMI is the manufacturing division of AC Industrial Technology Holdings Inc., a wholly owned subsidiary of Ayala Corp. It specializes in electronics for long product lifecycle segments such as automotive, industrial electronics and most recently the market. aerospace. From its 21 manufacturing facilities in 10 different countries, the company provides engineering, manufacturing and support and realization capabilities to multiple industries globally.