Metal casings supplier Catcher Technology Co (可成) expects a significant rebound in revenue in the second half of the year from last year on the back of increasing orders from existing and new clients, company chairman Allen Horng (洪水樹) said yesterday.
“The business outlook this year is better than last year. Shareholders will not be disappointed by Catcher’s performance,” Horng told a news conference after the company’s annual general meeting in Tainan.
The firm is a supplier for Apple Inc’s iPhones and MacBooks.
Catcher’s three main product lines — casings for notebook computers, tablets and smartphones — are to all expected to see growth this year, Horng said, citing order forecasts provided by clients.
Catcher on Friday last week announced it would spend NT$1.53 billion (US$50.39 million) to expand production capacity of its plant in Taizhou, China, its eighth capacity expansion plan this year.
Horng said that the company’s accumulative capital expenditure has reached NT$6.79 billion, and the total capital expenditure this year is likely to exceed last year’s NT$8.5 billion.
Catcher’s investment in production capacity is to prepare for the foreseeable rise in demand over next two years, he said.
“We invested in building plants and buying equipment as industry demand is quite clear,” he added.
Horng said he forecasts that glass and metal casings are to become the mainstream design in the smartphone industry, as a large international brand is adopting the materials for its handsets, prompting other brands to follow suit.
Glass makes wireless charging easier and faster, which would also attract more smartphone brands to use it, he added.
The production procedure for glass-backed metal casings has more steps than that for an all-metal casing, Horng said, adding that it is more challenging to assemble the casing with high production yield.
However, the complicated procedure also helps increase selling prices and benefits Catcher’s revenue performance, he said.
Although Horng did not specify which international brand is using the glass-backed metal casings, it is widely believed that at least one of Apple’s iPhone models this year is to adopt glass for its front and back covers.
Catcher shareholders yesterday approved distribution of a cash dividend of NT$10 per share based on the firm’s earnings of NT$28.58 per share, translating into a payout ratio of 35.08 percent.
This suggests a yield of 2.79 percent based on its closing price of NT$358 in Taipei trading yesterday.
HEAVY INVESTMENT: Moody’s affirmed the firm’s ‘Aa3’ rating with a ‘stable’ outlook due to its leading position in the industry and ability to match customer requirements Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) revenue this year is expected to increase about 21 percent to NT$1.29 trillion (US$44.01 billion) from NT$1.07 trillion last year, driven by strong demand for advanced 5-nanometer and 7-nanometer chips mainly used in smartphones and high-performance computing devices, a Moody’s Investors Service report on Wednesday said. TSMC’s rate of revenue growth next year is to increase to 7.5 percent, the ratings agency said. The company, which supplies 5-nanometer chips for Apple Inc’s new iPad series, has introduced the advanced chips ahead of its competitors and gained a significant share of the market for the foundry industry’s
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
Taipei Times: When do you think the hospitality industry can return to how it was before the COVID-19 pandemic? How does Formosa International Hotels Group (FIH, 晶華酒店集團) fare this quarter and beyond? FIH chairman Steve Pan (潘思亮): The virus outbreak will have a serious impact on business travel, driven mainly by meetings, incentive travel, conferences and exhibitions over the past three decades. For the past six months, many businesspeople have grown used to exchanging information on the Internet, where more people can participate. The trend might sustain for three to five years until people are vaccinated and it is safe to