Wed, Sep 04, 2019 - Page 11 News List

Yeh-Chiang betting on heat pipes

By Natasha Li  /  Staff reporter

Yeh-Chiang Technology Corp (業強), which specializes in thermal components and other electronics materials, yesterday said that it aims to increase shipments of heat pipes by more than 10 percent this year to 88 million units, as demand surges during the traditional peak season for consumer electronics.

Heat pipes, which are mainly used in smartphones and computers, contributed about 85 percent of the company’s overall revenue in the first half of the year.

“We are already more than halfway through our goal,” a Yeh-Chiang official said by telephone on condition of anonymity.

The company has high order visibility through the end of this quarter and expects the flow of orders to remain steady until the end of the year, the official added.

As smartphone makers are anxious to release 5G devices in the next few quarters, the company is optimistic about its vapor chamber business, as 5G devices generate much more heat compared with 4G models, necessitating demand for more efficient cooling systems, they said.

However, the company faces a labor shortage due to high production levels at its plants, which have yet to reach full capacity, the official said.

Yeh-Chiang reported a 44.62 percent year-on-year surge in net profit for last quarter to NT$65.66 million (US$2.09 million).

In the first half of the year, total net profit rose to NT$129.91 million, from NT$8.22 million in the same period last year, with earnings per share of NT$0.71.

Revenue declined from NT$978.39 million to NT$949.09 million over the six-month period, while gross margin increased from 13 percent to 28 percent, company data showed.

Yeh-Chiang is optimistic about shipments in the second half after shipping more than 9 million units in July.

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