General Interface Solution Holding Ltd (GIS, 業成), a touchpanel manufacturing arm of Hon Hai Precision Industry Co (鴻海精密), should see its revenue rise by as much as 40 percent this year, after Sharp Corp clinched a bigger order allocation from Apple Inc, KGI Securities Co (凱基證券) said.
Sharp is leveraging Hon Hai’s partnership with Apple after Hon Hai acquired a 66 percent stake in the Japanese firm for US$3.5 billion last year. Hon Hai is a major supplier of iPads and iPhones to Apple.
With Samsung Electronics cutting supply, Sharp is expected to fill between 30 and 40 percent of Apple’s LCD panel needs for the iPad this year, up from between 15 and 25 percent last year, KGI analyst Kuo Ming-chi (郭明錤) said in a client note on Thursday.
Moreover, Sharp will, for the first time, start supplying flat panels for Apple’s MacBook laptops, Kuo said in the report.
The Japanese panelmaker is expected to start shipments in the third quarter and deliver 2 million to 3 million units for the whole year, accounting for 15 to 20 percent of the total panels used in MacBooks, he said.
“GIS, which assembles display modules for Sharp, will be the biggest beneficiary of this development,” Kuo said.
GIS could see its revenue soar by between 25 and 40 percent this year to between NT$100 billion and NT$110 (US$3.2 billion and US$3.5 million), Kuo said.
KGI’s forecast was much higher than an estimate of NT$90 billion by most analysts. For example, Daiwa Capital Markets Inc analyst Kylie Huang (黃奎毓) expects GIS to make NT$83.5 billion in revenue this year on the back of rising orders and better average selling prices (ASP).
Kuo said he also expects GIS to start shipping 3D touch modules for OLED panels for iPhones in March.
The new 3D touch module carries a higher ASP, he said.
In addition, GIS has the chance to supply OLED modules to Sharp and therefore to Apple next year, if the US company launches mid-end iPhones equipped with less advanced OLED screens as it did before, Kuo said.
“As a result, we are bullish about GIS’ stock performance,” Kuo said.
Last year, the Miaoli-based GIS made NT$79.36 billion in revenue. The company generated about 30 to 40 percent of its revenue from touchpanels used in smartphones.
GIS shares surged 4.95 percent to NT$97.6 in Taipei trading yesterday, hitting their highest level in nine months.
NO VIRUS BLUES: A SEMI Taiwan official said that the virus does not slow down the global semiconductor industry’s investment in manufacturing equipment The production value of the nation’s semiconductor industry is expected to grow 16.7 percent this year from last year, outpacing the global industry’s 3.3 percent growth, industry association SEMI said yesterday. That would help Taiwan safeguard its second spot in the global semiconductor market with a production value of more than NT$3 trillion (US$102.73 billion), SEMI Taiwan president Terry Tsao (曹世綸) told a media briefing in Taipei for the Semicon Taiwan trade show beginning today. The global semiconductor industry’s production value is expected to increase to US$426 billion this year, SEMI said. In terms of semiconductor equipment investment, equipment billings from Taiwanese firms
Intel Corp has received licenses from US authorities to continue supplying certain products to Huawei Technologies Co (華為), a company spokesman said yesterday. Washington has been pushing governments around to world to squeeze out Huawei, saying that the telecom giant would hand data to Beijing for espionage. From Monday last week, new curbs have barred US companies from supplying or servicing Huawei. This week, the state-backed China Securities Journal reported that Intel had received permission to supply Huawei. China’s Semiconductor Manufacturing International Corp (SMIC, 中芯國際), which uses US-origin equipment to make chips for Huawei and other companies, last week confirmed that it had sought
INVEST IN TAIWAN: A metal components casting firm and the world’s largest maker of aluminum bicycle rims also obtained approvals to join the program Solar Applied Materials Technology Co (SOLAR, 光洋應用材料), a part of Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) “green supply chain,” has pledged to invest NT$1 billion (US$34.1 million) to build a new plant at the Tainan Technology Industrial Park (台南科技工業區), the Ministry of Economic Affairs said yesterday. SOLAR has been collaborating with TSMC to extract precious metals from waste and reuse them as “sputtering target” material in high-end semiconductor manufacturing, a TSMC press release issued in May said. Established in 1978, SOLAR also offers key materials and integrated services to customers in the optoelectronics, information and communications technology, petrochemicals and consumer electronics industries,
Swancor Renewable Energy Co (上緯新能源) yesterday announced plans for a 4.4 gigawatt (GW) offshore wind project off Miaoli County as part of its commitment toward Taiwan’s energy transformation, the company said in a statement. The “Formosa 4” project includes three deep-water wind farms 18km to 20km off the coast, Swancor Renewable CEO Lucas Lin (林雍堯) said, adding that planning for the project began last year. A proposal for Formosa 4 was this week submitted to the Environmental Protection Agency (EPA), the company said. Swancor Renewable jointly developed the Formosa 1 project, a 128 megawatt (MW) wind farm about 4km off Miaoli and the