Nanya PCB (NPC) plans to drop its capital spending from NT$5 billion (US$171 million) in 2010 to less than NT$1 billion in 2011, as most of its investment for expanding capacity for flip chip (FC) substrates is finished, according to the company. Capex for 2011 will be mainly used to expand capacity for HDI boards and BGA (ball-grid array) substrates, the company added.

NPC has increased monthly output of FC substrates to 37 million units, from 30 million originally, to cope with more orders for CPUs, the company revealed. As equipment for FC substrate production is costly, capex has to be sizable enough to carry the high costs, the company explained.

NPC said for 2011, it will be more focused on customer needs for HDI boards and BGA substrates. The company is looking to expand HDI board capacity by 66% to 500,000 square feet a month in 2011. Meanwhile, monthly output of BGA substrates will boost to 630,000 square feet, up 31% from 480,000 square feet in 2010.

NPC mainly ships BGA substrates for handsets, and HDI boards for a broader scale of consumer electronics applications including smartphones and tablet PCs.

In addition, NPC expects revenues for the first quarter of 2011 to decrease between 7% and 13% sequentially, due to less working days in the quarter and seasonal factors. The company turned in NT$9.58 billion in fourth-quarter revenues, up 4.66% on quarter. Revenues for 2010 amounted to NT$35.81 billion, rising 32.25% on year.