Chin-Poon Industrial Co., Ltd. (Chin-Poon), a major automotive board manufacturer, suffered a decline in revenue/profits due to fluctuations in exchange rates and increased copper prices. With its activation remaining at 90% or more, Chin-Poon has expanded its capacity through de-bottlenecking and has increased investments in its Thailand plant, which was incorporated last year, in order to perfect its production line with a continuously increasing market share.

 

In addition to other major manufacturers, such as TTM, CMK, and Meiko, Chin-Poon has a global market share of 13%. However, new PCB manufacturers have also been developing automotive boards in recent years. With its stable quality, 80% of Chin-Poon’s orders have been for automotive boards of old models, while only 20% of its orders has been for new models. Customers are reluctant to change suppliers, and Chin-Poon has also obtained new orders for new models, leading to an increase in its market share. Despite the growth of shipments this year, Chin-Poon experienced a decline in revenue/profits due to the depreciation of the U.S. dollar and the increase in copper prices. As 85% of Chin-Poon’s orders are quoted in U.S. dollars, its depreciation led to a decrease in revenue when converted to NTD; the increase in copper prices also affected its gross margin.

 

With regard to automotive board applications, including ADAS and electric cars, ADAS requires few automotive boards due to its small area, while electric cars require more automotive boards because of batteries, battery control, engine control, and charging systems. Chin-Poon has started to deliver automotive boards designed for electric cars. As the prospects of the electric car industry continue to brighten, the automotive boards designed for electric cars are expected to drive the company’s long-term growth. (Source: MoneyDJ-Focus News)

 

Winbond Will Invest NT$335 Billion in Kaohsiung

Minister of Science and Technology Chen, Liang-Gee, Kaohsiung Mayor Chen Chu, and Chairman of Winbond Chiao, You-Cheng held a joint press conference on the 25^th to announce the investment made in the 12-inch fab, which amounted to NT$335 billion, in Kaohsiung Science Park. This investment has been the largest single investment project in Kaohsiung in the past 10 years. With the industrial cluster effect, the semiconductor industry in Kaohsiung will become an integrated whole. Since this investment project is expected to create more than 2,500 job opportunities, Kaohsiung Mayor Chen Chu expressed her special thanks to the Ministry of Science and Technology and Winbond, which ultimately decided to invest in Kaohsiung, despite the preferential conditions offered by Singapore.

 

Winbond requires 25 hectares of land, so Kaohsiung City Government has proposed establishing the second park of Kaohsiung Science Park. According to Chen, Liang-Gee, industrial clusters are of great importance, so synergies will be considered to help determine the industrial layout. The Administration will take land, utilities, and air pollution into account for the next decade and will also need the support of Kaohsiung City Government. Chen, Liang-Gee also pointed out that universities and colleges in Kaohsiung should foster cutting-edge talents in line with the industrial and technological development of the science park.

 

Furthermore, Nanzi Export Processing Zone has also been saturated. Therefore, the Administration has actively renovated old plants and looked for land to expand or establish a new park. Currently, the Administration has contacted the Kaohsiung Plant of CPC Corporation and Taiwan Sugar Corporation, and those negotiations are still ongoing. (Source: Chinatimes)