Electronic component distributor WPG Group announced its second quarter financial forecast on May 2, estimating a single quarter operating income of NT$125 billion to 133 billion, with a gross margin ranging from 4.2% to 4.4%.

WPG said that it has grown steadily in areas such as 3C and automotive electronics, and has also been effective in emerging applications such as Internet of Things (IoT), artificial intelligence (AI), cloud storage, and high-speed computing.

According to industry insiders, WPG’s March results have clearly rebounded, and smartphone customers have gradually picked up their embedded multi-chip package (eMCP) shipments since March. It is estimated that WPG’s second quarter results will be higher than the first quarter, and the growth will depend on the orders of WPG’s medium and large customers in the second half of the year.

However, industry insiders also said that due to the decline in DRAM and NAND Flash prices, the second quarter results will not be able to reach the same period last year.