Yukihiro Aiba's questions to TOELY leadership • Q1 2025
Question
Inquired about the high gross profit margin in Q1, asking for details on the product mix improvement and the reasons for the expected margin decline in Q2 followed by a recovery in the second half of the year.
Answer
The strong Q1 margin was due to a favorable product mix and sales being pulled forward. The main growth drivers were high-value-added products for Taiwan (DDR5, HBM, GPU) and North America (logic). The expected Q2 margin decline is a result of a slight sales decrease after a strong Q1 and a seasonal increase in costs, particularly R&D. Margins are forecast to recover in the second half as sales are expected to increase significantly.