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it is labor intensive. layout engineers pay adjusted 5 to 7 percent minimum every year. If revenue cannot catch up, profit get squeezed. Just look to the revenue , u can tell the direction of the share price.
But isn’t that normal for a chip design company, labor cost is high as they need talented people, if the company keep pushing on R&D and keep on collaborating with China big tech, I think this will big a bargain to buy right now. Let’s not forget that Trump has not got in to the office yet, we might going to witness another trade war.
collaboration with china will affect its ability to use TSMC advance process nodes, which means lower profit margin. per employee per month only bring about RM2k to bottom line for now.
Attracting top-tier talent remains a critical component of the Group’s growth strategy. The Group acknowledges that the Malaysian government’s efforts to attract and develop the IC design market are beneficial for the industry but will, in the immediate term, impact the demand and supply imbalance.
top tier talent is indeed important, owwo. Unfortunately, company's leadership is equally important if not the most important :) Oppstar has been lacking in R&D for some reasons comparing to other IC design companies; well judging from its IP. Hopefully, the partnership with Samsung will help to improve the quality of its R&D activities.
oppostar needs to be more aggressive in investing. it is delaying some expansion even have proceed from IPO. Revenue difficult to go up if this is the case
I think Oppstar seriously need to know which segments are they targeting in terms of IC design. Is it front end, back end, power mgmt, test & packaging or etc. And specialize in areas that they are targeting and increase IPs. Without IPs, Oppstar is losing out the opportunity to sell their IC design / IPs and they are limited to IC design services - basically waiting to be contracted by OEMs/customers.
probably bcos Oppstar is not doing full turnkey services, Owwo. They might be looking into developing partnership with foundry in the future. They cant deliver end2end full turnkey services without foundry to manufacture the physical product. They are limited to design services. And design services are further limited by the lack of IPs and they can only depend on assignments/contracted by OEMs/customers - typically the fabless companies. I cant see any potential for scalability at the moment judging by their lack of IPs. Just my opinions, could be wrong. Hope it helps.
thx@cheng , management "seems" to have not disclosed detailed response strategies. Is it possible that considering the potential competitive threat in the future, they deliberately concealed confidential business information? A worse scenario might be that they failed to achieve the ability to reverse the predicament and put the blame on external factors, such as the cooling of semiconductor demand.
I believed they are really lacking in terms of IPs and resulted in limited scope within IC design. And cant really see which areas they are specializing. They have only two IPs that I can see from the patent office filed back in 2021 - (1) Multi-input configurable logic cell with configurable output region (2) Three-dimensional FPGA with structure ASIC hardening capability.
