ShunSin Technology Holdings Ltd (訊芯), which makes system-in-package (SiP) modules used in Apple Inc’s smartphones, expects revenue to grow by double digits this year from last year’s NT$5.38 billion (US$168 million) thanks to new product launches, a company executive said yesterday.
ShunSin, 71 percent owned by Hon Hai Precision Industry Co (鴻海精密), generates more than 80 percent of its revenue from SiP modules, primarily for handset power amplifiers (PA).
The company, which counts the world’s top five PA suppliers as its clients, shipped 800 million units last year and accounted for 22.21 percent of the global PA market.
The firm is competing with Advanced Semiconductor Engineering Inc (ASE, 日月光半導體), the world’s largest chip packager, in securing SiP orders from Apple.
“Last year was a fruitful year. We believe this year we will have double-digit percentage growth,” ShunSin chairman Frank Hsu (徐文一) told investors ahead of the company’s debut on the local bourse on Jan. 26, with the initial offering price set at NT$122 per share.
“We will soon begin shipping [high-speed] fiber-optic transceivers for servers, which will be one of the company’s [new] driving force this year,” Hsu said. “We will also ramp up production of MEMS [microelectromechanical systems] this year, making it the company’s second growth driver.”
The company said that most of the MEMS produced this year would be used in mobile phones, but it is planning to broaden usage to cover automobiles next year and the Internet of Things in the future.
The global SiP market is expected to surge to US$22.5 billion in 2018, from US$2.5 billion in 2009, riding on the rapid growth of mobile devices, notably handsets, Grand Fortune Securities (福邦投顧) said.
ShunSin’s gross margin is expected to return to healthy levels this year after its new facility, which is set to begin operations next month, eases capacity constraints, Hsu said.
The new plant in China’s Guangdong Province should boost output by 30 percent, the company said.
Insufficient capacity drove its gross margin down to 28.89 percent in the first three quarters of last year, from 45.62 percent in 2013.
“To meet customer demand, we had to farm out production in the third quarter last year, which increased costs,” Hsu said.
The company said that revenue surged 89 percent to NT$643 million last month from NT$340 million the previous month. For the full year, revenue soared 44.72 percent to NT$5.38 billion from NT$3.72 billion in 2013.
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