KUALA LUMPUR: Frontken Corp Bhd
is keeping a positive outlook over the semiconductor industry off the back of a strong first-half performance, underpinned by an uptick in demand.
In a filing with Bursa Malaysia, the group said the industry is supported by long-term structural demand, driven by artificial-intelligence, high-performance computing, automotive electronics and advanced manufacturing.
"While customers remains measured in their capital spending, the group continues to enhance its technical capabilities, expand its service offerings and invest in capacity to support future growth opportunities," it said.
The group reported its net profit for the six-month period ended June 30, 2026, was nearly 40% higher at RM90.08mil, as compared to RM64.56mil in the same period in 2025. This was underpinned by a 30% improvement in revenue to RM376.72mil over the same period, coupled with effective cost controls.
In the second quarter alone, Frontken reported a higher net profit of RM47.72mil, as compared to RM33.49mil in the year-ago quarter.
Quarterly revenue rose to RM186.91mil from RM156.43mil, underpinned by higher contributions from its Malaysian and Taiwan subsidiairies.
The group declared a dividend of two per share, with the entitlement and payment dates to be announced at a later date.
According to the Frontken's filing, revenue for its Malaysian subsidiaries increased 106% year-on-year (y-o-y) due mainly to higher sales in the oil and gas business.
There was a 7% y-o-y increase in the revenue of its Taiwan subsidiary with semiconductor volume growing on higher demand and strong customer orders.
