Flexium Interconnect, Inc. (Flexium), a FPC manufacturer, is expecting better operation performance in Q4 compared to the previous prediction of flat performance. iPhone X shipments are expected to increase the Flexium shipments in Q4 by 20%, leading to the best Q1 performance in years in Q118. Furthermore, Flexium has the opportunity to enter the FPC antenna supply chain in order to relieve the existing bottleneck of the new model supply. The FPC antenna has significant entry barriers and better ASP. Flexium expects to increase the penetration rate of new models next year. As for product structure, communication products, computers, and consumer products accounted for 75%, 19%, and 6% in Q3, respectively.

 

        Looking at Q4, Flexium originally estimated in the investor conference at the end of October that the shipments of mobile phone FPC would remain flat in Q4 due to the bottleneck of the overall supply chain, despite the effect of Apple’s new model. So far, the supply chain has been smooth. The shipments in Q4 are expected to increase by 20%, a significant improvement from the original estimation. Considering the late launch of the iPhone X in 2017, the pull-in momentum is expected to continue; furthermore, the new MacBook is expected to appear on the market in Q118, so the overall performance in Q118 is expected to be better than the same period in past years.

 

        In addition to the new model effect, Flexium has the opportunity to enter the FPC antenna supply chain. As Apple’s new model adopts special materials, barriers to entry are significant, and ASP is better. FPC antenna suppliers have been previously reported to have had poor yields, so Flexium has the chance to enter the FPC antenna supply chain this year and expects to further increase its penetration rate in 2018, subject to actual orders.

 

        Flexium has continuously invested in new technology, including the next-generation 25 um fine line. Focusing on artificial intelligence and Big Data with high performance computing, Flexium has begun developing next-generation FPC technology. In the second half of 2017, the Kaohsiung Plant adopted the customized test equipment line and successfully manufactured 25 um products through mass production. (Source: Money DJ)