Taiwan-based Leatec Fine Ceramics is expected to carry out a 20-25% capacity expansion for ceramic substrates at its plant in Kunshan, China in 2021 to meet lingering strong demand for chip resistors, according to industry sources.
The company has seen robust shipments of ceramic substrates to major clients including Yageo, Walsin Technology and Ta-I Technology for production of chip resistors that have been in strong demand for remote work, learning and gaming applications amid the pandemic and for 5G and automotive uses rebounding since second-half 2020, the sources said.
Leatec has raised its quotes by 8% in 2020 amid the increasingly tight supply, enabling its January-November revenues to rise 20.52% on year to NT$790 million (US$28.05 million).
Leatec also operates a plant in northern Taiwan, dedicated to production of special specs or non-resistor substrates. It has kicked off volume production of newly developed ziroconia toughened aluminum (ZTA) substrates with better high-temperature and shock resistance performance, mainly for application to new energy vehicles.
The company has seen clear order visibility for the next 3-4 months, better than the industry average.