Sino-American Silicon Products (SAS) is expected to report an EPS of NT$3.50 (US$0.113) for the third quarter of 2010, according to market watchers. The positive result is largely due to persistent supply shortage for its three main product lines, semiconductor wafers, solar wafers and sapphire substrates, and minimal impact from currency exchange.

Semiconductor wafers, solar wafers and sapphire substrates represented nearly 30%, 70% and 2% of SAS' revenues, and capacity utilization is currently full across its product portfolio. The company has plans to add a new facility for each of its product lines with completion scheduled for the next two to three years.

SAS will have a solar wafer capacity of 800MWp by the end of the year, which has been completely reserved. In October, the company allocated more capacity for A++ high-performance wafers, and hence its ASP should continue to rise into November, and third-quarter gross margin should climb to 25% from 21% in the first half. Margins for semiconductor wafers and sapphire substrates are even higher at above 30%.

In related news, fellow solar wafer maker Danen Technology is projected to report NT$1 in EPS for the third quarter, and even stronger results in the fourth.