IC substrate makers Nan Ya PCB and Kinsus Interconnect are both expected to post significant revenue and profit increases in 2020 as robust demand from segments of smartphones, servers, networking equipment and 5G base stations will linger, especially those for high-end ABF substrates, according to industry sources.
Nan Ya saw its December 2019 revenues hit the year's high at NT$3.013 billion (US$100.18 million), up 27.08% on year, and its fourth-quarter revenues rose 4.1% on quarter and 13.19% on year to NT$8.77 billion, the highest quarterly sum in five years. Its overall revenues for 2019 also reached a five-year high of NT$31.09 billion, up 7.84% from 2018.
Significant surge in ABF substrate demand for networking equipment and 5G base station applications contributed the most to the firm's impressive revenue growth in fourth-quarter 2019, the sources commented.
Besides ABF substrates, the sources continued, SiP substrates for handset application and HDI boards for use in handsets and wearable devices will also serve as growth drivers for Na Ya in 2020,
Kinsus revenues of NT$2.18 billion for December 2019 also hit the year's high, rising 6.3% on month and 6.5% on increased shipments for ABF substrates starting in the fourth quarter. The firm's revenues for the whole 2019, however, decreased 5.9%.
The company is expected to boost its shipment ratio for ABF substrates for application to datacenters and base stations in 2020, but handset IC substrates, which contributed over 40% of revenues in 2019, will remain the firm's core business segment this year, especially BT substrates for 5G handset SoC and AiP applications.
Meanwhile, Na Ya is expected to double its 2020 capex from NT$3.5-4.0 billion registered in 2019 to support its capacity expansions for both IC substrates and HDI boards at its plant in Kunshan, China, with new capacities to be available later in the year.
Kinsus capex for 2020 is estimated at NT$5 billion, which will be mainly used to boost ABF substrate capacity expansion by 50% by June, and capacities for AIP and DRAM substrates will also be expanded if needed.
Article translated by Willis Ke
