Nytex Composites Co (耐特科技), which makes specialty plastic compounds, expects revenue contribution from semiconductor materials to rise to more than 23 percent this year due to growing demand for artificial intelligence (AI) and advanced chips.
That would represent a big jump from 16.25 percent of total revenue last year and a mere 4.36 percent in 2023.
The Changhua County-based company tapped into the semiconductor sector in 2020, as it sought to transform itself into a supplier of high-value materials amid intensifying market competition.
Photo: Lisa Wang, Taipei Times
Revenue expanded 19.24 percent last year to NT$2.54 billion (US$77.57 million) from NT$2.13 billion in 2023, company data showed.
Nytex’s biggest revenue sources come from specialty plastics used in everyday life goods, such as office furniture, office automation, suitcases and mechanical parts, making up about 33 percent.
“Semiconductor materials are our new revenue driver, adding to the company’s already very diversified revenue sources,” Nytex chairman Jason Chen (陳勳森) told reporters during a factory tour on Thursday, adding that he was positive about this year’s growth.
Established in 1988, Nytex started supplying specialty plastic compounds in 2020 to Gudeng Precision Industrial Co (家登精密), which at the time was scrambling to find a domestic supplier due to supply disruptions from overseas, Chen said.
Gudeng makes extreme ultraviolet pods, advanced front-opening unified pods and wafer cassettes for Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), Intel Corp, Chinese and South Korean chipmakers.
Nytex has spent NT$100 million to build two production lines in Changhua County to produce specialty plastic compounds, doubling the capacity from two years ago, to cope with rapidly growing demand for semiconductor materials used in advanced wafer pods and cassettes, which transport wafers during the chip manufacturing process, it said.
“We started looking into the premium material business about six years ago, as we found that Chinese manufacturers were ready to ramp up mass production of [mid-end] materials. A majority of premium materials are for semiconductors, which was totally new to us,” Nytex president Henry Chen (陳宇涵) said.
In China, Nytex plans to ramp up its first production line in Shanghai to supply semiconductor materials used in less advanced wafer pods for Chinese chipmakers, which make chips on less advanced process technologies such as 28 nanometer technology, it said.
Nytex is also set to supply plastic compounds used in IC trays, which are used in advanced packaging technology, chip-on-wafer-on-substrate (CoWoS) technology, next quarter, Jason Chen said.
Nytex’s plastic compounds are also used in back-up battery units, which are equipped within AI servers to prevent data losses and equipment damage during power outages, it said.
The company operates six production lines to supply plastic compounds used in electronics and other products, in addition to 10 production lines in Taiwan to supply plastic compounds to make heat sinks for Wi-Fi routers, vehicle parts, connectors and bicycle parts among others.
The company plans to submit an application for an initial public offering this year.
BIG BUCKS: Chairman Wei is expected to receive NT$34.12 million on a proposed NT$5 cash dividend plan, while the National Development Fund would get NT$8.27 billion Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, yesterday announced that its board of directors approved US$15.25 billion in capital appropriations for long-term expansion to meet growing demand. The funds are to be used for installing advanced technology and packaging capacity, expanding mature and specialty technology, and constructing fabs with facility systems, TSMC said in a statement. The board also approved a proposal to distribute a NT$5 cash dividend per share, based on first-quarter earnings per share of NT$13.94, it said. That surpasses the NT$4.50 dividend for the fourth quarter of last year. TSMC has said that while it is eager
‘IMMENSE SWAY’: The top 50 companies, based on market cap, shape everything from technology to consumer trends, advisory firm Visual Capitalist said Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) was ranked the 10th-most valuable company globally this year, market information advisory firm Visual Capitalist said. TSMC sat on a market cap of about US$915 billion as of Monday last week, making it the 10th-most valuable company in the world and No. 1 in Asia, the publisher said in its “50 Most Valuable Companies in the World” list. Visual Capitalist described TSMC as the world’s largest dedicated semiconductor foundry operator that rolls out chips for major tech names such as US consumer electronics brand Apple Inc, and artificial intelligence (AI) chip designers Nvidia Corp and Advanced
Saudi Arabian Oil Co (Aramco), the Saudi state-owned oil giant, yesterday posted first-quarter profits of US$26 billion, down 4.6 percent from the prior year as falling global oil prices undermine the kingdom’s multitrillion-dollar development plans. Aramco had revenues of US$108.1 billion over the quarter, the company reported in a filing on Riyadh’s Tadawul stock exchange. The company saw US$107.2 billion in revenues and profits of US$27.2 billion for the same period last year. Saudi Arabia has promised to invest US$600 billion in the US over the course of US President Donald Trump’s second term. Trump, who is set to touch
SKEPTICAL: An economist said it is possible US and Chinese officials would walk away from the meeting saying talks were productive, without reducing tariffs at all US President Donald Trump hailed a “total reset” in US-China trade relations, ahead of a second day of talks yesterday between top officials from Washington and Beijing aimed at de-escalating trade tensions sparked by his aggressive tariff rollout. In a Truth Social post early yesterday, Trump praised the “very good” discussions and deemed them “a total reset negotiated in a friendly, but constructive, manner.” The second day of closed-door meetings between US Secretary of the Treasury Scott Bessent, US Trade Representative Jamieson Greer and Chinese Vice Premier He Lifeng (何立峰) were due to restart yesterday morning, said a person familiar
RSS