Tong Hsing Electronic Industries, which provides assembly and test services for niche ICs and produces ceramic substrates for the manufacture of LEDs, expects its capex for 2015 to exceed NT$1.5 billion (US$47.8 million). The capex will be used mainly to expand its new factory.
The capex for 2015 could outpace the record NT$1.53 billion allocated for 2012, Tong Hsing indicated.
Tong Hsing will sign a contract to acquire a factory located in Longtan, northern Taiwan in March, the company disclosed. Tong Hsing plans to have half of its existing product lines manufactured at the new facility by the middle of 2016, and will ultimately have all its production take place there, the company said.
Tong Hsing is cautiously optimistic about its business outlook for 2015. The company expects its first-quarter revenues to decrease almost 10% sequentially as a result of seasonal factors.
Hybrid IC modules and specialty packages will outperform Tong Hsing's other product lines in terms of growth in 2015, thanks mainly to brisk demand coming from the automotive, MEMS and medical sectors, the company noted.
Sales generated from Tong Hsing's LED ceramic substrate and image sensor lines will have room to rise further in 2015, the company said. Demand for LED ceramic substrates will be driven by general lighting, as well as automotive and handset applications, the company suggested. As for image sensor packaging and testing, Tong Hsing is looking to expand its customer base in 2015.
In other news, Tong Hsing's board of directors has announced plans to deal out a cash dividend of NT$6 for 2014, when the company reported net profits of NT$1.51 billion on consolidated revenues of NT$8.34 billion. Net EPS for 2014 came to NT$9.27.
