Polarizer maker Cheng Mei Material Technology (CMMT) plans to ramp up its monthly output to four million square meters from the current 3.5 million through an overhaul of its production lines, according to company chairman Ho Chao-yang.
The capacity expansion project is being implemented in line with CMMT's improving business performance and growing market demand, said Ho, adding that the company has swung back to profitability since the second quarter of 2020.
The company also aims to adjust its product mix to focus on higher-margin products along with the capacity ramp-up plans, Ho added.
Polarizers for IT applications will account for 40% of revenues in 2021 compared to 30-35% previously, and those for TVs will go down to 45% from 50%. Meanwhile, the company will also develop polarizers for automotive applications.
CMMT will also see an adjustment of its client base, with shipments to local clients in Taiwan to account for 45% of its total shipments in 2021, followed by Chinese (35%), and those in Japan and Korea the remaining 20%.
A polarizer plant in China that CMMT owns 38.4% kicked off its second 2.5-meter polarizer line in second-half 2020 and will significantly expand its output 2021, further driving up profits at CMMT in the year.
CMMT chairman Ho Chao-yang
Photo: Sihihmin Fu, Digitimes, February 2021
