Cheng Uei Makes Inroads Into Micro-projectors

Taipei, Oct. 21, 2009 (CENS)--Cheng Uei Precision Industry Co., a member of the Foxlink Group, will cooperate with the U.S.-based Microvision Corp., a leading developer of micro-projector technology, to build micro-projector modules. The company will also tie up with Intel Corp. to develop high-frequency, high-speed connector modules.

Cheng Uei said it has snatched up 95% of the orders placed by the U.S.-based Apple Computer for I/O connectors for Netbook PCs. I/O connectors are typically used in displays, hard-disc drives, and computer peripheral equipment.

Thanks to the increased shipments of the connectors for Apple's iPhone cellphones and iPod digital music player and Microsoft's Xbox game consoles, Cheng Uei saw operating profit margin rise in the third quarter of this year, saying that its profits in the third quarter exceeded that in the first half.

With pretax earnings reaching NT$352 million (US$10.93 million at US$1:NT$32.2) in the second quarter of this year, Cheng Uei expects to score over NT$700 million (US$21.73 million) in pretax earnings in the third quarter.

An institutional investor noted, with Apple's orders, that Cheng Uei will see rising sales in the future, driven by high demand for Apple's innovative Netbook PCs.

Cheng Uei is expected to have good opportunities to tap the micro-projector manufacturing sector as it has close ties with big players as Nokia, Samsung and Apple.