HDI PCB specialist Compeq Manufacturing expects its operations to rebound in the third quarter, boosted by a ramp-up in shipments for new mobile phone lens modules and new notebook orders from Apple in the second half.
Compeq saw revenue slide significantly during the first quarter traditional slow season. Although demand for mobile phones, notebooks, and tablet computers were weak, Compeq noted that demand for satellite communications products was stable. Pressure from capacity utilization rates and quarterly price reductions also impacted performance.
Compeq expects performance to bottom out in April-May, then gradually improve in the third and fourth quarters.
Sources estimate Compeq's utilization rate in the first half will hover around 60%.
It has been reported that the new lens module is the highly anticipated periscope lens. Whether it will be adopted by the entire iPhone 15 series is still unclear.
Industry players noted that China-based mobile phone customers are awaiting the release of new phone models in hopes they will jump start the sluggish market.
Demand for low earth orbit (LEO) satellites continues to grow, according Compeq, which expects its new capacity in this sector will drive growth in the second half.
Compeq added that current satellite launch cycles are stable. Coupled with the active expansion of Starlink customers in Asia and Africa, Compeq is optimistic about contributions from LEO satellites in the future.
Compeq's capital expenditure for 2023 is estimated around NT$4.5-5 billion (US$146.02-162.25 million) and will mainly focus on expanding mSAP for HDI and flexible printed circuit boards (FPCB), as well as SMT equipment.
FPCB and rigid-flex boards currently account for 17% of Compeq's overall revenue.
In response to customer needs, and as part of its global layout, Compeq invested 970 million Thai baht to establish a subsidiary in Thailand in April.
The factory in Thailand will initially focus on rigid PCB capacity for satellite communications products. Production is not expected to begin until fourth-quarter 2024 at the earliest and is expected to begin contributing to revenue in 2025.
Compeq's first-quarter revenue totaled NT$13.5 billion. Gross margin came in at 14.32% and net profit after tax fell 81% on year to NT$357 million.
Article translated by Eifeh Strom
