KUALA LUMPUR (Oct 24): Judging by the recent spate of positive results posted from semiconductor players, a return to strong net profit growth could be on the cards for the industry which, combined, makes up Malaysia’s largest exporters.

On Thursday, Vitrox Corp Bhd (KL:VITROX) became the second semiconductor-related company to report its latest quarterly results — following peer UWC Bhd (KL:UWC) back in September — with its earnings jumping more than 50%.

The Penang-based automated test equipment maker recorded a huge jump in earnings in the quarter ended Sept 30, 2025 (3QFY2025), as strong demand across both its automated board inspection and machine vision system segments pushed topline growth to an all-time high.

Its net profit rose to RM34.7 million from RM22.45 million a year earlier, as revenue jumped 55.8% to RM228.57 million.

A month earlier, UWC, located a stone’s throw from Vitrox, also posted stellar results for its fourth quarter.

The engineering supporting services provider reported a sevenfold jump in net profit and a 43.5% rise in revenue in the three months ended July 31, 2025 (4QFY2025) due to a rebound in the semiconductor sector.

Its net profit rose to RM16.46 million from RM2.37 million, as revenue increased to RM108.79 million from RM75.81 million, said UWC, which provides precision sheet metal fabrication, machined components and assembly services.

With both UWC and Vitrox registering strong results, all eyes are now focused on other players in the sector.

Sector peers Frontken Corp Bhd (KL:FRONTKN), Key Asic Bhd (KL:KEYASIC), Unisem (M) Bhd (KL:UNISEM) and Dufu Tech Corp Bhd (KL:DUFU) are expected to announce their results next week.

Meanwhile, others expected to announce their results next month include Inari Amertron Bhd (KL:INARI), Pentamaster Corp Bhd (KL:PENTA), Mi Technovation Bhd (KL:MI), Malaysian Pacific Industries Bhd (KL:MPI) and  KESM Industries Bhd (KL:KESM).

In a note last week, CIMB Securities said the sector has moved past the trough of 2023 and 2024, as evidenced by most tech companies operating at healthy utilisation levels of above 80% and steady-to-improving order books.

Nonetheless, the research house remained “neutral” on the sector, but noted its preference for automated test equipment (ATE) and outsourced semiconductor assembly and test (OSAT) players as they don’t incur any tariff-related costs. 

TA Securities also adopted a similar “cautious” stance on the sector in a note last week, despite the underlining projected continued growth in global semiconductor sales.

The research house’s vigilance was prompted by lingering uncertainties over US trade policy.

Beyond domestic borders, Lam Research Corp also indicated strong demand for its semiconductor equipment used to manufacture semiconductors for artificial intelligence applications.

The US-based semiconductor equipment maker forecasted second-quarter revenue above Wall Street estimates on Wednesday.

That said, it has not been smooth sailing for the domestic semiconductor sector this year.

Recall the Bursa Malaysia Tech Index’s hefty fall in April when the US announced its salvo of reciprocal tariffs against various countries. The index remains down 4.39% year to date.

Malaysian semiconductors exported to the US are exempted from tariffs under the current status quo. However, US President Donald Trump’s vow to impose a 100% tariff on semiconductor chips imported into the US still hangs over the heads of local players.

An investigation by the US Department of Commerce into Section 232, the power that enables the exemption, is underway to assess risks that such imports pose to national security. The probe is slated to be completed by December.

Another event that may be of key importance is the 47th Asean Summit set to take place in a couple of days.

Trump is set to attend the multilateral event over the weekend. Prime Minister Datuk Seri Anwar Ibrahim has made known that his discussions with the US president will include strengthening Malaysia-US trade and investment ties.

As for Malaysia’s formal negotiations with the US regarding trade deals on crucial sectors, especially semiconductors, Anwar had said that they were slated to be finalised on Wednesday.