Taiwan-based ACX, specializing in LTCC (low temperature co-fired ceramic) components for RF front-end modules, is set to complete a 40% capacity expansion in the third quarter, adding growth momentum to its second-half 2021 revenues, according to industry sources.
AXC is set to start in July a trial run of new capacity at its plant site in central Taiwan, with volume production slated for the fourth quarter of the year, the sources said.
The capacity expansion is necessitated to meet ever-mounting demand for 5G and Wi-Fi applications. The company has seen clear order visibility throughout the third quarter and is sustaining full capacity utilization at its existing production lines, the sources said.
ACX boasts circuit design, materials development, process technology and product testing capabilities and can offer highly-customized products and services for chipmaking clients including MediaTek and Realtek Semiconductor, the sources said.
The company saw over 50% of its revenues come from 5G handset applications in first-quarter 2021, compared to nearly 20% for Wi-Fi 6/6E applications, and similar sales momentum continues in the second quarter, the sources indicated.
As LTCC demand for 5G handsets is 3-4 times that for 4G models, the company's overall shipments will remain strong although handset vendors are not pulling shipments as earnestly as seen in early 2021, the sources continued.
ACX is strengthening R&D efforts on broadband and high-frequency LTCC components for more IoT, wearable device, automotive and mmWave applications.
Its revenues for the first four months of the year came to NT$1.026 billion (US$37.31 million), up 57.53% on year.
