VisEra Technologies, a TSMC-affiliated optical component supplier, anticipates third-quarter growth driven by rising demand for CMOS image sensors (CIS), as high-end smartphone camera adoption expands and automotive sensing features reach lower-tier vehicle models. Meanwhile, shipments of micro-optics elements (MOE) are seeing short-term weakness due to dispersed customer product lines, with recovery expected no earlier than 2026.
To meet growing CIS performance requirements in smartphones and vehicles, VisEra is developing thinner optical components and collaborating with clients on emerging applications, including AI glasses and optical AI communication systems.
Chairman Robert Kuan confirmed that VisEra will launch Phase 2 construction of its Longtan plant under TSMC's leasing framework, ensuring adequate capacity for future volume production of next-generation technologies.
Mobile devices accounted for 74% of VisEra's second-quarter revenue, down 8pp year-over-year. In contrast, automotive and surveillance segments rose to 16% and 10% of revenue, respectively, each up 4pp from the prior year.
VisEra attributed rising CIS demand to China's smartphone subsidies, enhanced EV sensing requirements, and the replacement push favoring domestic brands. The mainstreaming of 50-megapixel cameras has boosted CIS shipments and fab utilization, particularly at the high end. However, second-quarter gains were partially eroded by NT dollar appreciation, leading to a slight year-over-year revenue dip for the first half of 2025.
VisEra stated it maintains a full natural hedge against FX volatility, with revenue and raw material costs primarily in US dollars. However, labor and manufacturing costs are NT$-based. A 1% appreciation of the NT$ versus the US$ would reduce revenue by an equivalent 1%.
If the NT$/US$ exchange rate averages 28.6, VisEra forecasts third-quarter revenue to grow by a low- to mid-single-digit percentage quarter-over-quarter, with modest second-half gains. Gross and operating margins are expected to improve slightly, depending on FX trends, capacity utilization, and product mix.
VisEra reported second-quarter consolidated revenue of NT$2.219 billion, up 2% from the previous quarter but down 9.5% year-over-year. Gross margin declined to 22.8%, dropping 1.7 points sequentially and 6.8 points from a year earlier.
Operating profit reached NT$274 million with a margin of 12.3%, down 1 point quarter-over-quarter and 7.2 points year-over-year. Net income totaled NT$273 million, rising 1.49% sequentially but falling 35.6% from the same period last year.
Article edited by Jack Wu
