Taiwanese Firms to Benefit From iPad 2G

Taipei, Mar. 11, 2011 (CENS)--A couple of Taiwanese manufacturers of computer parts and touch panels are expected to benefit from launch of Apple Inc.'s iPad 2G, as the popularity of tablet PCs has fueled demand for touch panels and HDI (high-density interconnection) printed circuit boards.

Among them, TPK Holding Co., Ltd., the leading touch panel maker on the island, is the most likely to gain steam on iPad 2G in the coming years, as the firm, which earns 70% of its revenues from Apple per year, has reportedly landed the client's order for touch panels for use in the tablet PCs.

Hopefully, the firm will see its shipment and sales revenue significantly shoot up starting in March, with the growth to rise month by month throughout the second quarter of this year along with iPad 2G, as well as iPhone 5 and other new smartphones, hitting the consumer market.

Having gained a higher position in the global supply chain of touch panels, institutional investors indicated, TPK Holding is expected to challenge sales revenue of over NT$100 billion this year, with EPS (earnings per share) to reach between NT$45 and NT$50.

The Taiwanese HID board producer Compeq Manufacturing Co. is also likely to turn profitable on the rise of smartphones and tablets this year, especially when Apple has worked on any-layer HDI boards for its iPad 2G.

In the face of growing demand for HDI boards, the firm, which has worked hard improving its defect rates and dedicated itself to making rigid-flex models, said that a bright business prospect for this year is certainly expectable. Institutional investors also estimate the firm's full-year EPS at between NT$1-1.5 in the year.

Riding on the rise of smartphones and tablets, Compeq's Taiwanese counterpart Tripod Technology Corp. scored EPS of NT$10.73 last year as the most profitable firm of this kind on the island. With market demand for HDI boards and PCBs already starting to simmer in the first quarter, the firm has confirmed influx of contract orders, making it optimistic about its business performance this year.

Revenues and Profits by the Said 3 Taiwanese Manufacturers in 2010
Company	TPK Holding Co., Ltd.	Compeq Manufacturing Co.	Tripod Technology Corp.
Combined Revenue	NT$59.599 bn.	NT$22.331 bn.	NT$43.016 bn.
Year-on-year Growth Rate	219.00%	20.44%	28.70%
EPS	NT$23.03	- NT$0.49 (as of the end of Q3)	NT$10.73

Source: companies