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PCB maker Chin-Poon seeing strong demand for autom

Chin-Poon Industrial has seen orders from the automotive and consumer electronics sectors for the third quarter exceed its capacity, with a gap reaching 10%, according to the company. Its plants in China and Taiwan have reached full utilization rates.

The company's current monthly orders of LED backlight boards used in LCD TVs have reached NT$60-70 million (US$1.8-2.1 million), and it has entered the supply chain of a top-20 automobile vendor. Revenue share of automotive PCBs is likely to increase from 30% currently to 50%, becoming Chin-Poon's biggest product line, according to the company.

Despite tight capacity, Chin-Poon has no plan to expand capacity before the end of 2009. Expansion will depend on the outlook in 2010, the company noted.

Market watchers estimate Chin-Poon will enjoy a 15-20% sequential revenue growth in the third quarter, with gross margins of 15-16%. The company is expected to post record consolidated revenues of NT$1.1 billion (US$33.65 million) for August, up more than 15% sequentially, the sources added.


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