Taiwan Chinsan sees growth in Q3

TAIPEI, TAIWAN: With order visibility likely to extend to September, Taiwan Chinsan Electronic Industrial, the Taiwan-based aluminum capacitor manufacturer, is looking at posting a month-on-month growth during the third quarter of the current financial year.

The company has reported consolidated revenues of US$8.72 million (NT$286 million ) for June, up by 33.6 per cent on month. This is in fact a record for the company. Second-quarter consolidated revenues totaled NT$711 million, up 36.7 per cent on quarter.

It is expected that Taiwan Chinsan's second-quarter gross margin might return to 23 per cent as the patent rights of its material supplier in Germany have expired, resulting in a 10 per cent reduction on procurement costs.

The company in the meantime will see its revenue share from the Japan market touch the 10 per cent mark. Japanese gains would mostly come due to the fact that the company has cut into the supply chain in that country.

The company has said its shipments to Japan would get kick started by the month of April and will expand in June. Taiwan Chinsan currently boasts of shipments comprising 18mm aluminum capacitors used in games consoles to Japan-based vendors.

Japan is believed to stay on as a major market with more product lines in the future. The company has also lined up plans to push upward the capacity of its mid and high-voltage products by 50 per cent by the end of 2009.