Iteq expands its presence in the high frequency CCL field
28 August 2023
According to industry sources, Taiwan-based CCL provider Iteq is preparing to expand its operations in the high-frequency and high-speed sectors to achieve its long-term goal of surpassing Panasonic in market share.
In spite of volatile market conditions, Iteq's August revenue increased 4.09% year-on-year to a record monthly high of NT$2,173 million (US$69.47 million), and its January-August revenue increased slightly by 0.45% year-on-year to NT$15.54 billion.
Iteq attributes the impressive August revenue performance to a steady expansion of CCL shipments of servers, network communications and storage applications. In the first half of this year, these three market segments accounted for more than 50% of the company's revenue, and only the second quarter gross margin increased by about 5 percentage points.
Driven by China's 5G infrastructure construction, CCL's demand for network applications has shown the most significant growth. According to industry sources, the network is expected to become the main revenue growth driver for Taiwan and China CCL, IC substrate and PCB suppliers in the second half of the year.
Major customer Huawei redesigned the 5G base station equipment, showing the need for higher specification CCL materials. As the specification upgrade is within its technical capabilities, Iteq is optimistic that its CCL products can successfully pass Huawei's re-validation, and then the improved product portfolio and higher specifications, higher price CCL products will greatly promote the source, the company said Recent income.
According to sources, AMD has gained market share in its second-generation Epyc server chip solution, which is expected to greatly increase Iteq's revenue performance.
Overall, Iteq has begun to provide revenue at its new plant in Jiangxi Province, China, and its production capacity has now reached 300,000 units per month, which will increase as demand expands in 2020.
In spite of volatile market conditions, Iteq's August revenue increased 4.09% year-on-year to a record monthly high of NT$2,173 million (US$69.47 million), and its January-August revenue increased slightly by 0.45% year-on-year to NT$15.54 billion.
Iteq attributes the impressive August revenue performance to a steady expansion of CCL shipments of servers, network communications and storage applications. In the first half of this year, these three market segments accounted for more than 50% of the company's revenue, and only the second quarter gross margin increased by about 5 percentage points.
Driven by China's 5G infrastructure construction, CCL's demand for network applications has shown the most significant growth. According to industry sources, the network is expected to become the main revenue growth driver for Taiwan and China CCL, IC substrate and PCB suppliers in the second half of the year.
Major customer Huawei redesigned the 5G base station equipment, showing the need for higher specification CCL materials. As the specification upgrade is within its technical capabilities, Iteq is optimistic that its CCL products can successfully pass Huawei's re-validation, and then the improved product portfolio and higher specifications, higher price CCL products will greatly promote the source, the company said Recent income.
According to sources, AMD has gained market share in its second-generation Epyc server chip solution, which is expected to greatly increase Iteq's revenue performance.
Overall, Iteq has begun to provide revenue at its new plant in Jiangxi Province, China, and its production capacity has now reached 300,000 units per month, which will increase as demand expands in 2020.
