Green Revenue
Chroma reported operating revenue of NT$18,676,043,000 in FY2023, representing a decrease of 15.37% compared to FY2022. However, it was still the second-highest operating revenue in Company history. The main reason for the revenue decline in 2023 was the significant difference in demand for semiconductor-related equipment compared to the previous year. However, this was in contrast to the trend observed in the demand for electric vehicles and energy storage, which remained robust.
After a period of inventory correction, we look forward to 2024. Projections for semiconductor demand are optimistic. This optimism stems from accelerated advancements and efficiency enhancements in AI chips and high-performance computing (HPC), along with a substantial rebound anticipated in mature processes. Semiconductor and photonics testing solutions are anticipated to emerge as the primary catalysts for operational growth in 2024, while measurement and automated testing equipment are expected to sustain steady growth.
After a period of inventory correction, we look forward to 2024. Projections for semiconductor demand are optimistic. This optimism stems from accelerated advancements and efficiency enhancements in AI chips and high-performance computing (HPC), along with a substantial rebound anticipated in mature processes. Semiconductor and photonics testing solutions are anticipated to emerge as the primary catalysts for operational growth in 2024, while measurement and automated testing equipment are expected to sustain steady growth.
Chroma was established in 1984 and is now a world-leading supplier of Chroma-branded precision electronic testing and measurement instruments, automated testing systems, intelligent manufacturing systems, and comprehensive testing and automated turnkey solutions. The primary fields of application of Chroma products include electric vehicles, green batteries, LEDs, solar power, semiconductors/ICs, photonics, flat panel displays, video and color, power electronics, passive components, electrical safety, thermoelectric temperature control, automated optical inspection, smart manufacturing systems, clean technology, and smart factories. We invest heavily in R&D resources every year to maintain our leadership in key technologies and highly integrated capabilities in the optical, mechanical, electronic, temperature control and software fields to retain our competitive advantages and achieve sustainable business operation.
With the surge of generative AI, there has been a corresponding increase in demand for highperformance computing, driving up the need for components and related applications in peripheral systems. Within this market landscape, the importance of the need for semiconductor component testing cannot be overstated. In addition to its established leadership in the power test and measurement market, Chroma has also carved out a significant presence in the critical field of semiconductor component testing.
While already a major player in the global ATE (automated test equipment) market, Chroma remains proactive in responding to market trends and customer demands, targeting high-growth potential applications in the semiconductor market to expand its market share. It is evident that efficient platform conversion support is also a crucial asset for Chroma ATE, and given its strategic positioning and continuous innovation efforts, the Company is expected to sustain stable performance and mAintain a leadership position in the fields of AI, IoT, and third-generation semiconductor testing.
With the surge of generative AI, there has been a corresponding increase in demand for highperformance computing, driving up the need for components and related applications in peripheral systems. Within this market landscape, the importance of the need for semiconductor component testing cannot be overstated. In addition to its established leadership in the power test and measurement market, Chroma has also carved out a significant presence in the critical field of semiconductor component testing.
While already a major player in the global ATE (automated test equipment) market, Chroma remains proactive in responding to market trends and customer demands, targeting high-growth potential applications in the semiconductor market to expand its market share. It is evident that efficient platform conversion support is also a crucial asset for Chroma ATE, and given its strategic positioning and continuous innovation efforts, the Company is expected to sustain stable performance and mAintain a leadership position in the fields of AI, IoT, and third-generation semiconductor testing.
Note1: (Including the units of kilometers, meters, feet, kilograms and sets): We and our subsidiaries have adopted the “high-mix low-volume” manufacturing strategy rather than mass production which involves automated production lines. Therefore, the production volume could not be stated in a single unit.
Note 2: The Chroma New Material Corporation terminated operations on March 31, 2022.
Note 2: The Chroma New Material Corporation terminated operations on March 31, 2022.
Chroma’s product line and technology primarily encompasses:
1. Measurement Instruments: This segment falls within the testing instrument industry of the ICT sector. Our clientele spans various industries including the CCTV, power supply, passive component, LCD module, LED, semiconductor, solar energy, and electric vehicle industries, where we offer products for testing and verification purposes.
2. Automation Equipment: Chroma has leveraged their strong capabilities in measurement equipment, automation systems, and MES software, to offer customers integrated automated turnkey solutions. Our main products include automation production and system integration for solar module lines, TFT-LCD production, battery module automatic testing systems, and cleanroom equipment planning and system integration, among other diverse integration solutions.
The 2023 revenue breakdown by product category was as follows: measurement instruments 95%, automation equipment 4%, and other products 1%.
1. Measurement Instruments: This segment falls within the testing instrument industry of the ICT sector. Our clientele spans various industries including the CCTV, power supply, passive component, LCD module, LED, semiconductor, solar energy, and electric vehicle industries, where we offer products for testing and verification purposes.
2. Automation Equipment: Chroma has leveraged their strong capabilities in measurement equipment, automation systems, and MES software, to offer customers integrated automated turnkey solutions. Our main products include automation production and system integration for solar module lines, TFT-LCD production, battery module automatic testing systems, and cleanroom equipment planning and system integration, among other diverse integration solutions.
The 2023 revenue breakdown by product category was as follows: measurement instruments 95%, automation equipment 4%, and other products 1%.
Chroma started business operations with display testing, with a vision to develop precise, reliable, and unique testing instrumentation. We have gradually diversified the scope of our services to nine major testing product groups which cover electricity, electronics, passive components, semiconductors, IC design, and others. Committed to becoming a world-class company, Chroma ATE actively addresses the impacts of climate change in its global operations. From research and development to manufacturing, and in its products and services, Chroma actively implements various green and environmental measures.
Green Revenues
In 2023, the decision to switch to the FTSE Russell Green Revenues Classification System (GRCS) for assessing green performance was primarily because the FTSE Russell Green Revenues Classification System aligns more closely with the industrial applications and technological fields related to Chroma's product lineup. Chroma's parent company achieved a green revenue of NT$6,018,371,000 in FY2023 according to the FTSE Russell Green Revenues Classification System (GRCS), accounting for 48.0% of the total operating revenue of NT$12,529,774,000, marking a 6.2% YoY increase from FY2022.
1. Transportation Equipment related applications accounted for 15.7%: including electric vehicles, EV batteries, etc.
2. Energy Management and Efficiency Improvement related applications accounted for 28.2%: including energy storage batteries, energy-saving appliances/LEDs, power management, smart grids/meters, smart manufacturing, intelligent information management, etc.
3. Renewable Energy Equipment related applications accounted for 4.2%: including fuel cells, solar photovoltaics, renewable energy, etc.
2. Energy Management and Efficiency Improvement related applications accounted for 28.2%: including energy storage batteries, energy-saving appliances/LEDs, power management, smart grids/meters, smart manufacturing, intelligent information management, etc.
3. Renewable Energy Equipment related applications accounted for 4.2%: including fuel cells, solar photovoltaics, renewable energy, etc.
Innovative technology plays a crucial role in the design of energy-efficient testing equipment. Each year we prepare a technology development roadmap based on the direction of operations. Our R&D projects are based on the principle of no repeated investment in the same technology and we coordinate all R&D units to the innovation or improvement in the performance of different technologies. Additionally, the Advanced Technology Research Center focuses on the research of core, and forward-looking technologies, to make early preparation for the requirements of new products that the Company will launch over the next 2 to 5 years. We are enhancing the rate of green equipment coverage based on a principle of the maximization of labor use.
The 2024 green business performance target is the achievement of a YoY growth of 10% to reach 52.8%.
The 2024 green business performance target is the achievement of a YoY growth of 10% to reach 52.8%.
Chroma welcomes your voice, please don't hesitate to contact us!