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Order visibility for passive component materials clear for 3-4 months

Jane Wang, Taipei; Willis Ke, DIGITIMES Asia 0

Taiwan's suppliers of upstream materials for passive components have seen clear order visibility for 3-4 months ahead thanks to a significant ramp-up in demand for MLCCs, chip resistors and molding chokes for 5G handsets, notebooks and automotive applications, according to industry sources.

Ample Electronic Technology, dedicated to conductive pastes for capacitors, inductors and resistors, will shorten the upcoming Lunar New Year holidays to maintain regular shipments to clients during the period, the sources said.

The company is set to install new equipment at its production lines in late March, with additional capacity expected to be available for commercial run in second-quarter at the earliest, the sources continued.

The company's revenues shot up 66.81% on year to NT$135 million (US$4.8 million) in January, hitting a new high for the fifth consecutive month. It will focus more efforts on expanding sales in Japan, Korea and Southeast Asia in 2021.

Lasertek Taiwan, engaged mainly in tape and reel packaging materials for passive components, has been running at full capacity to meet strong demand from clients in Taiwan and Japan, and will maintain normal production during the upcoming holidays to support shipments set for late February as its inventories are almost running out, the sources said.