Flexible PCB (FPCB) maker Flexium Interconnect and Taiflex Scientific, a supplier of flexible copper-clad laminates (FCCL), have recently revealed plans to raise capital to ramp up production to meet rising demand for touch screen devices such as smartphones and tablets.

Flexium will raise NT$1.3 billion (US$43.5 million), including a NT$800 million convertible bond issue and a rights issue, mainly to finance its China plant expansion, according to a resolution passed by the company's board of directors.

Flexium said it has budgeted NT$500-600 million in capex for 2011, compared to the NT$300 million allocated for 2010. The company will expand capacity for back-end production processes by 30% at its plant in Kunshan, China, with the new capacity to come online around the end of third-quarter 2011.

Taiflex expects to raise an estimated NT$400 million through issuing Taiwan convertible bonds. Following the bond issue, the company also plans to launch a rights issue.

Taiflex is looking to add an additional capacity of 100,000 square feet a month to its current capacity in 2011. In addition, the company also plans to expand its monthly production capacity for PV module backsheets by 800,000 square feet.