Connector maker SpeedTech Corp (宣德) yesterday said it plans to expand capacity at its Mexico plant by year-end with six new surface-mount technology production lines, 14 injection molding machine lines and two assembly lines, company spokesman Ethan Hsu (徐嘉德) told an earnings conference in Taipei.
The expansion would support production of printed circuit controller boards for tier-one North American automotive customers, as well as point-of-sale terminals for a major North American mobile payment provider, Hsu said.
The company also expects to begin shipping new products to a US earphone customer next quarter from its Vietnam plant, focusing on true wireless stereo components and advanced connectors, he said.
Photo courtesy of SpeedTech Corp
SpeedTech, which supplies connectors and wiring harnesses, enclosures and plastic injection parts, operates plants in Taiwan, China, Malaysia, the Philippines, Vietnam and Mexico. Its major customers include Apple Inc and Tesla Inc.
Connectors are expected to generate 50 percent of SpeedTech’s revenue this year, with electronic components contributing 20 percent, and final assembly and other businesses accounting for the remaining 30 percent, he said.
SpeedTech expects revenue this year to be split 45 percent in the first half and 55 percent in the second half, he added.
Hsu said a US smartphone customer, which he declined to name, accounted for 45 percent of SpeedTech’s revenue last year.
Shipments to the customer have so far remained on par with last year, but mass shipments are to begin next month and continue through October, he added.
Although the third quarter is traditionally the company’s peak season, revenue is expected to hit its high in the fourth quarter on the back of mass shipments of a system assembly product, Hsu said.
SpeedTech reported first-half revenue of NT$10.92 billion (US$358.62 million), up 20 percent year-on-year.
However, the sharp appreciation of the New Taiwan dollar in the second quarter reduced revenue by about NT$100 million, he said.
As a result, the company reported a net loss of NT$105 million in the second quarter, the first quarterly loss in two years.
The company still posted a net profit of NT$82.67 million in the first half of the year, or earnings per share of NT$0.48.
Full-year revenue is expected to surpass last year’s level, supported by the company’s Mini Cool Edge IO products, Hsu said.
The products are designed and partly manufactured in Taiwan, with the first batch of samples submitted for authentication yesterday and mass production slated for next year, he added.
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