Zhou Xianying, chairman of Hon Hai Group’s large touch panel manufacturer Yecheng GIS-KY, pointed out that from the second half of last year to the first half of this year, due to the epidemic, the demand for home work related products is good, and it seems that the second half of the year should be good. The main growth momentum still comes from application products such as tablet computers and notebook computers.
In terms of capital expenditure, Zhou Xianying said that GIS-KY will also continue to invest in back-end process equipment and expand the assembly capacity of Mini LED-related backlight modules. In the first half of this year, capital expenditure has reached NT$5 billion (approximately RMB 1.15 billion). The whole year is estimated to be at least NT$7-8 billion (about 1.85 billion yuan).
Next year’s capital expenditure will focus on the production capacity expansion of fingerprint recognition-related technology products, as well as the investment and construction of overseas bases/factories in India and Southeast Asia. In addition, GIS-KY’s Taichung Houli factory has also been deployed since last year, and will mainly invest in special application products such as fingerprint recognition and in-vehicles in the future.
In terms of automotive products, in addition to traditional touch panel module bonding, Houli Factory also includes coating technology related processes, such as surface glass Cover Glass, and Megasite integrated modules, etc. In the future, GIS-KY will not be limited to Supply of touch technology solutions.
Zhou Xianying emphasized that although supply chain issues must be considered, including semiconductor shortages and Southeast Asia epidemics, which may affect the condition of some parts and components, they are still good in terms of demand.
However, due to the good demand in the first half of this year, the company estimates that the revenue ratio in the first and second half of this year will not be as large as in the past, but it is expected that the second half of the year will still have a little more performance than the first half.
The main growth momentum of GIS-KY this year still comes from iPad tablet computer products, which are estimated to account for more than 60% of overall revenue. Last year, tablet-related products accounted for about 58%, mobile phones accounted for 18%, and NB and other products accounted for about 20%-30%.
The growth rate of GIS-KY’s NB products this year may be relatively small, mainly due to the conversion of new and old products from customers. In order to launch new products in the third quarter, the company consumed some capacity in the second quarter, but the proportion of notebook products in the fourth quarter will increase. . The proportion of mobile phones will drop again before the end of the year.
In terms of product lines, new medium-sized models were launched for major customers in the second quarter, and small-sized products may gradually decrease in the long run. In the second half of the year, Mini LED-related new products will be shipped, because the material usage and processing procedures are more complicated, and the unit price of the product will be higher.