Trade Resources Industry Views Rigidtech Improves PSS Capacity in China

Rigidtech Improves PSS Capacity in China

PSS (patterned sapphire substrate) maker Rigidtech Microelectronics is setting up a factory in eastern China with initial monthly capacity of 100,000 PSS and volume production there will begin around the end of 2015, according to the company.

When the new factory comes into operation, Rigidtech said the company's total monthly capacity in Taiwan and China will increase to 1.3 million PSS. Production capacities in Taiwan and China currently account for 60% and 40% of its PSS shipments, and the ratio will gradually change to 50:50, Rigidtech indicated.

PSS shipped to Taiwan-based LED epitaxial wafer makers are mostly of 4-inch models while those for China-based LED makers are mainly 2-inch ones, Rigidtech noted.

In addition to use for making LED epitaxial wafers, Rigidtech said it will begin to ship PSS covers for smartphone cameras and smartwatches in second-quarter 2015. Rigidtech expects to ship 9.0 million PSS and 6.0 million smartphone camera covers in 2015 and shipments of covers for smartphone cameras and smartwatches, which offer higher prices and gross margins than PSS, are expected to drastically increase from 2016, it said.

Rigidtech posted net EPS of NT$7.80 (US$0.25) for 2014 and will distribute a dividend per share of NT$3.50, NT$1.00 in cash and NT$2.50 in stock.

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Rigidtech Expanding PSS Capacity in China
Topics: Lighting