As China panel makers including BOE Technology, China Star Optoelectronics Technology (CSOT) are aggressively moving to develop OLED panels, Taiwan suppliers of related engineering equipment including Acter and Nova Technology are expected to continue gaining growth momentum in 2018 from their presence in the supply chains of the China players after scoring record revenues in 2017, according to industry sources.
Acter reported consolidated revenues of NT$1.157 billion (US$39.07 million) for December 2017, shooting up 77.86% on year, and its total annual revenues for the year soared past the NT$10 billion level for the first time to hit NT$11.4 billion after surging 36.09% from a year earlier.
The company attributed the sharp revenue growth in 2017 to China makers of OLED panels, optoelectronics products and semiconductors actively increasing capital expense on building new plants under government policy support. For instance, in late 2016 BOE kicked off construction of a 6G OLED panel production plant in Mianyang, southwestern province of Sichuan, with Acter supplying clean room engineering equipment and water gasification equipment for the plant, which already started official run in late October 2017.
Acter is optimistic about stronger demand in 2018 for engineering equipment needed by China players in the OLED, optoelectronics and semiconductor sectors to support their acceleration in building plants, as the three sectors are among strategic industries bolstered by the China government in its 13th Five-Year Plan (2016-2020). At the moment, at least 50% of orders received by Acter come from the sectors.
Meanwhile, Acter's subsidiary Nova Technology also saw its consolidated revenues for the whole year of 2017 rise 26.06% on year to hit a historical high of NT$3.343 billion, with its fourth-quarter revenues shooting up 195% on year to reach a record quarterly high of NT$1.14 billion.
The revenue growth was also bolstered by increased sales to China's players in the semiconductor, panel and optoelectronics fields. The company witnessed 67% of its revenues come from the China market in 2017, up from 59% in 2016.
In 2018, Nova expects to explore more sales of its water process equipment, stripper recycling systems, and water resources green energy integration systems to China customers and other international clients.