Leadframe maker I-Chiun Precision Industry plans to further expand production capacity for another two product lines - heat spreaders and LED photocouplers - by 30% each, with the additional capacity scheduled to come online in the first quarter of 2022, according to the company.

The company said it has doubled capacity for heat spreaders so far this year and will enforce another 30% expansion early next year to meet strong demand from major global backend service clients, with 70% of them based in Taiwan.

I-Chiun noted it has continued to increase capacity for lamp-type LED leadframes and photocouplers, which see clear order visibility for the next 1-2 months. And after the planned 30% capacity expansion is completed for photocouplers, the revenue contribution ratio for the product will rise further from the existing 20%.

The company raised its quotes for LED leadframes and heat spreaders in the second quarter of the year to reflect increased costs for materials including copper, and the new quotes are bolstering its revenue increases for the third quarter.

Its August revenues jumped 46.39% on year to a six-year high of NT$545 million (US$19.67 million), and January-August sales ballooned 51.96% on year reaching NT$3.917 billion.

In terms of revenue ratios for different product lines, LED leadframes including related photocouplers took the lead with 46%, followed by 13-15% each for heat spreaders and IC leadframes, 10-11% for TV backlight modules, and 10% for ceramic substrates, according to company statistics.

While expecting its third-quarter sales to surge sequentially, the company noted its fourth-quarter revenues will at least stay flat compared to a quarter earlier or even grow sequentially, depending on whether China will continue power restrictions in October.

The company has halted production of TV backlight modules at its plant in China's Kunshan due to power cuts by the local government, but shipments for due orders have been readied before the suspension. This, coupled with slackened demand for TV applications, has helped the company cushion the impact of power cuts, the company said. And its plant in southern China is using its own power generators to maintain production, mainly to serve rush orders.

By DIGITIMES