Apple to increase flexible PCB purchases
The forthcoming iPhone 6S series will feature Force Touch technology, which will demand more flexible PCBs (FPCB). As a result, Apple is set to increase orders to its FPCB suppliers including Zhen Ding Technology and Flexium Interconnect, according to industry sources.
Both Zhen Ding and Flexium will see their revenues climb starting June, and are set to report brisk revenue results for the second half of 2015, said the sources.
Orders from Apple, mainly those for high-end FPCBs, will also boost profitability at both Zhen Ding and Flexium, which are expected to generate record profits for all of 2015, the sources indicated.
Zhen Ding posted a record EPS of NT$9.12 (US$0.30) in 2014. Flexium’s EPS soared to NT$3.28 in the first quarter of 2015, almost half of the NT$6.71 reported for all of 2014.
In addition, HDI PCB manufacturers Compeq Manufacturing and Unimicron Technology are both expected to see their quarterly revenues register sequential growth through the last quarter of 2015, the sources noted. Both are reportedly PCB suppliers in Apple’s supply chain.
A pick-up in orders from China-based handset vendors has already lifted Compeq’s capacity utilization rate to almost 80%, up from 70-75% in the first quarter, the sources disclosed. Compeq’s utilization rate is set to rise further in the third quarter as shipments for new iPhone and other smartphone models kick off, the sources said.
For its part, Unimicron expects to run at near full capacity for HDI boards in the third quarter of 2015, up from less than 80% in the first quarter, company chairman Tze-chang Tzeng remarked previously.