Chang Wah Electomaterials (CWE), after building a solid presence in the distribution of semiconductor materials, is on track to transform into a manufacturer of diverse materials including even front-end process solutions.

Company chairman Canon Huang said CWE has got off to a good start in the transformation through acquiring in 2020 a 10% stake in eChem Solutions, a maker of special chemical materials for semiconductor and display industries.

Huang stressed that CWE will actively plan the positioning and development direction of its subsidiaries, and strengthen mutual support and cooperation among them to maximize the group's synergies and expand its footprint in semiconductor materials sector.

CWE now mainly distributes packaging materials such as epoxy resin, silver paste, leadframes and IC substrates for international vendors. Its subsidiary JMC Electronics is dedicated to producing COF substrates for processing driver ICs and other chip products, and another subsidiary Chang Wah Technology specializes in manufacturing metal leadframes.

Huang has expressed optimism that revenues and profits of CWE and its subsidiaries will log impressive gains in 2021 due to persistent strong demand for semiconductor packaging and front-end process materials.

Bolstered by robust orders from backend houses and IDMs as well as automotive electronics market recovery, CWE's consolidated revenues for 2020 grew 6% on year to NT$16.424 billion (US$586.57 million), with operating incomes rising 20% on year reaching NT$1.321 billion and gross margin increasing 1.1pp to 14.9%.

By DIGITIMES