Nan Ya PCB has set aside a capex budget of NT$17 billion (US$605.5 million) for 2022, double last year's level of NT$8.45 billion, mainly to expand its production capacity for ABF substrates to meet persistently strong demand from chipmaking clients.
At a recent investor conference, Nan Ya disclosed plans to boost its IC substrate capacity by 20% in 2022. Under the plans, the company is set to ramp up volume production of ABF substrates starting in the second quarter of the year at a rented plant site in Taoyuan, Taiwan, and will also strive to commercialize production at a new ABF substrate plant in Shulin, Taiwan, by the end of 2022. Additional capacity for BT substrates will be operational at its new fab in Kunshan.
The company said it will focus production more on IC substrates and gradually scale down output of HDI and traditional PCB products. Its shipment ratio for IC substrates will surge to over 85% in 2022 from 82% in 2021, thanks to persistently strong demand for ABF substrates for processing server, networking, and HPC chip solutions. Nan Ya stressed it will continue to develop high-end ABF substrates with layer counts greater than 16 to satisfy growing demand for processing 5nm CPUs, 6nm GPUs, and other advanced ASICs for HPC and AI applications.
Meanwhile, the company will start trial production of BT-based SiP substrates in the second quarter of 2022 at its Kunshan plant, and will achieve full-scale production in late second quarter or early third quarter, with applications including 5G small cells, transceivers, network signal switches, and automotive electronics.
Nan Ya's 2021 revenues rose 35.6% on year to NT$52.23 billion, and net earnings shot up 188.6% on year, reaching a record high of NT$10.58 billion.
The company is optimistic it will log another year of double-digit revenue growth in 2022 on robust demand and possible price hikes for ABF substrates, and its earnings will also trend upward if there are no major foreign exchange fluctuations.
