Compeq Manufacturing Co (華通電子), the nation's largest maker of boards that connect parts in mobile phones for companies such as Nokia Oyj and Motorola Inc, forecast a loss for this year. The company didn't indicate the size of the loss.
The company also said it's targeting 20 percent growth in shipments of handset boards, according to its statement to the Taiwan Stock Exchange Corp. The company aims to ship 85 million boards this year, which will maintain its 16 percent share of the world market, analysts said.
"On a quarterly basis, the worst is almost over," said Sharon Su (
Compeq, which turned to a NT$1.2 billion loss in 2002, has about 10 domestic rivals and another five overseas, which over-invested in production in China on an expected surge in demand for handsets, Su said.
Supply of handset boards and demand should balance later this year on slowed investment in new capacity, she said.
The shares fell NT$1, or 4.7 percent, to NT$20.10 on the TAIEX.
Advanced Semiconductor Engineering Inc (日月光), the world's second-largest chip packager, and Compeq on Oct. 29 agreed to form a venture to make materials used to connect semiconductors in mobile phones and other electronics.
The partners said they would invest US$800 million over five years to expand capacity after combining their production of so-called substrates. Substrates are used to implant chips in boards rather than on the surface, helping manufacturers reduce the size of mobile phones and add more features, such as cameras.
"The main issue for Compeq is the substrate investment, which won't make a profit this year," Su said.
Compeq still leads its domestic rivals in substrate technology, which may become a competitive advantage, she said.
Compeq is expected to post a NT$2.3 billion (US$69.2 million) loss for last year, based on the average estimate of three analysts surveyed by Thomson Financial.
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