As LG has been contracted to supply 60% of the LCD screens used in iPad minis, TSMT is tantamount to filling most of iPad minis need for backlight light bars with LG's contracts.
AU Optronics Corp. (AUO) supplies the remaining 40% of the screen. TSMT has also won contracts to assemble LCD control boards and LED light bars for AUO.
While TSMT has kept a low profile amid the reports, industry executives pointed out the company's shipments of light bars and control boards have increased sharply in August and estimated the brisk shipments will continue at least into November.
Apple will release iPad mini soon. Major suppliers in the iPad mini supply chains include PCB manufacturers Taiwan PCB Techvest Co., Ltd. and T-mac Techvest PCB Co., Ltd. in addition to LG and AUO.
TSMT saw its consolidated revenue for August hit the third high of its history although postponed rollout of iPad mini. The company estimated its revenue for September would set a new high mostly thanks to shipments of iPad mini products.
While asked about the production of low-margin light bars, the company estimated its gross margin to rise in the second half this year from the firs half thanks to its inroad into the relatively profitable control board sector.
TSMT executives pointed out that in addition to iPad mini rollout, mainland China's weeklong holidays observed for the Oct. 1 National Day will boost the company's shipments with the mainland's brisk shopping for LCD TVs.
They estimated the company's shipments to continue increasing in December, a traditional low season after the Christmas shopping peak in November. The point is how popular new tablet versions would be in the market.
