Touch solution provider General Interface Solution (GIS) is expected to generate sequential revenue increases starting the second quarter of 2023, with the fourth quarter reaching the year's peak, according to industry sources.
GIS' shipments to the notebook and tablet segments have stalled as major customers continue adjusting inventory, the sources said. But shipments to the electric vehicle (EV) and metaverse segments are expected to start boosting company sales in the second quarter of 2023.
New MR applications are expected to enter volume production in the second or third quarter of 2023, and sales for automotive applications will double. Shipment momentum for MR and automotive applications will accelerate further in 2024.
GIS has allocated NT$3 billion (US$98.06 million) in capex budget for 2023. It will expand capacity at its Houli plant in central Taiwan for capacitive fingerprint sensors and automotive applications. It already started volume production for capacitive fingerprint sensors in the fourth quarter of 2022, and it will mainly expand capacity for side-mounted fingerprint sensors targeting tablets.
Its automotive touch applications with 3D lamination chiefly cater for first-tier customers. The customers have expressed strong interest in adopting the touch applications and the production lines are being certified by the customers.
GIS is also supporting Foxconn's MIH EV platform. It is providing touch modules for center information displays, and is also providing face recognition applications for MIH's Model 1.
GIS said its automotive production lines and technologies are ready. It expects automotive applications to account for 5% of overall company sales in 2023, up from the present 2-3%.
GIS reported NT$14.37 billion in sales for the first quarter of 2023, down 48.9% year-on-year. It expects major clients to gradually complete inventory digestion, boosting its sales in the second quarter. Its sales in the second half of 2023 will be better than the first half.
Article translated by Rodney Chan
