In 2012, Chilisin broke its 3rd consecutive record high in revenue. In a difficult year for many passive component makers due to decline in PC demand and price erosion, Chilisin, one of the largest inductor manufacturers in the Greater China region, achieved an outstanding 7% revenue growth year-on-year. Chilisin was able to outperform most industry peers due to various reasons; most importantly, its early penetration into China's hand-held device market and its newly developed relationships with Chinese and Korean customers contributed to its outstanding performance in 2012.
Sales to smartphone customers accounted for roughly 20% of Chilisin's total revenue in 2012. Last year, in response to smartphone market's quick rise and hand-held device miniaturization trend, Chilisin was able to successfully offer many new products, including its LVS Series wire-wound power inductor as well as 0402-sized chip beads and inductors. Digitimes Research estimated that smartphone shipments in China will reach 189 million in 2012, achieving a 137% growth rate year-on-year compared to 2011, and continue to grow 36% to drive shipments to reach 256 million in 2013. Jack Chung, Chief Operating Officer at Chilisin, states that in light of its continued growth momentum, smartphone sales will become one of the main factors that will support sustainable growth for the company.
Continued success in 2013 will depend largely on Chilisin's technological capability in offering new products, production capacity expansion, as well as market penetration into new regions and applications. In anticipation of the thinness and lightweight trend of hand-held devices, Chilisin successfully developed the AME/MHCD Series high-current molding power inductor and 0201-sized chip beads and inductors in 2012. Sources from the industry have stated that focus in 2013 will be on battery performance enhancement within hand-held devices. Ready for full production this year, the AME-MHCD Series is set to become a main driver of growth. Alongside the AME/MHCD Series power inductor, the TFL Series thin-film chip inductor was developed last year for high-precision smartphone and tablet RF application. Production is expected to ramp up significantly in 2013 as demand for high-end hand-held devices continue to grow. Another product development highlight will center on the multilayer and thin-film type Common Mode Chokes for USB 3.0 and HDMI application. Currently in testing phase, these new products lead the way among various other inductors to be developed in 2013.
Growth in sales will be boosted by capacity expansion of both newly developed and mature products. In the months transitioning from 2012 to 2013, roughly 80% of Chilisin's production lines operated at full capacity. Since November 2012, Chilisin has already expanded its workforce by 20%, and is projecting to invest roughly 15 million US dollars in 2013 to expand and enhance its production facilities in both China and Taiwan.
Further growth in 2013 will be driven by market penetration into new geographies and applications. Sales to the Greater China region in 2012 accounted for 82% of Chilisin's total revenue. After its strategic entry into China's handheld device market in 2011, Chilisin is expecting to enter into new markets beyond the greater China region. The 2012 CEATEC Exhibition in Japan was a hallmark for Chilisin's entry into the Japanese market, through which Chilisin established relationships with both Japanese and International distributors and customers. Chilisin expects to receive substantial orders from Japan in the coming year as Japanese end-product manufacturers face increasing price pressure. Continued marketing efforts in the US and Russia is also expected to yield promising returns in the coming year. Apart from hand-held devices, automotive and lighting applications will be an important working point for Chilisin to diversify its product application.
Chilisin has had a successful run since 2009, almost doubling its revenue in 3 years. Through strategic planning in terms of market penetration, product development, and capacity expansion, Chilisin has been able to break its own revenue record year on year since 2009. By focusing on its core strengths, Chilisin seeks to achieve its fourth consecutive record revenue in 2013.
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