I-Chun Precision Industry will soon hike quotes for leadframes used in LED and IC packaging to reflect increases in costs for copper and other metals, with the adjustment to vary from client to client, according to the company.
Copper pricing has risen to a 9-year high and copper alloy takes up about 80% the materials of leadframes fr IC packaging, I-Chiun said.
Utilization of production capacity for all types of leadframes has risen to over 70% due to increasing demand, I-Chiun noted, adding demand for leadframes used in IC packaging is expected to grow the most in 2021, followed by that for infrared LED photocouplers and LED packaging.
Currently, leadframes for LED packaging account for 40-50% of consolidated revenues; leadframes for IC packaging, 7-8%; and heat spreaders, 12-13%, I-Chiun said. The company will expand production capacity for leadframes used in IC packaging and heat spreaders in 2021, with the new capacity to come into operation in the third or fourth quarter.
I-Chiun posted consolidated revenues of NT$4.197 billion (US$148 million), gross margin of 12.41%, operating loss of NT$47.1 million, and net loss of NT$148.0 million for 2020. It has decided not to distribute any dividend for the year.
I-Chiun has reported consolidated revenues of NT$346.8 million for February 2021, decreasing 26.09% sequentially but increasing 80.75% on year, and those of NT$816.0 million for January-February grew 70.40% on year.
