Compeq Manufacturing, a major Taiwan-based PCB supplier, on December 22 announced it has completed a syndicated loan of NT$5 billion (US$167 million) with a 19-member banking consortium. The loan will be used to mainly pay off the company's existing bank loans and decrease debts, and increase working capital.

In addition, Compeq revealed plans to expand capacity for any-layer HDI boards in 2011. In anticipation of growing demand for smartphones and portable electronics devices, the company initially will ramp up its monthly capacity for any-layer HDI boards by 20,000-30,000 square feet, equivalent to 150,000-200,000 square feet of traditional HDI boards, in 2011.

With new capacity coming online, Compeq expects to see total capacity for HDI boards top two million square feet a month in 2011 compared to the current 1.8 million.

Market watchers have estimated Compeq's revenues for the fourth quarter of 2010 to grow about 10% on quarter. The PCB maker is likely to remain profitable in the fourth quarter with results slightly better than those posted in the prior quarter, according to the watchers.

Compeq reported its first profits in five quarters in the third quarter of 2010. The company has not given its guidance for the fourth quarter, but said visibility of orders, especially for handset PCBs, has extended to between the first and second quarters of 2011.

Compeq shares closed up 6.5% at NT$18 on the Taiwan Stock Exchange (TSE) on December 22.