Taiwan-based Viking Tech, which specializes in the design and manufacture of chip resistors, plans to expand capacity for thin-film resistors by 20-30% in 2011 to meet demand from car electronics and medical applications, according to company president Stone Wei.
Viking Tech has entered the supply chains of Hyundai Motor and car component supplier Kostal, Wei said. Viking Tech is also shipping thin-film resistors to Bosch, Wei added.
As for medical instruments, Viking Tech has landed orders shifted from competitors as it is able to shorten delivery times to fewer days, Wei indicated.
As thin-film resistors target niche markets, producing them helps Viking Tech sustain a gross margin of more than 40%, Wei pointed out. Prices for thin-film resistors are relatively stable compared to those for standard resistors, Wei added.
Viking Tech has a monthly capacity of about 240 million thin-film resistors at present, Wei revealed. The company is also capable of making two billion thick film resistors a month, as a result of its acquisition of thick-film specialist Tmtec, Wei said.
In August 2008, Viking acquired Tmtec, which designs and manufactures standard thick film resistors including high-voltage, pulse withstanding, high power and anti-sulfur parts.
Despite more output available for thick-film resistors, thin-film products still play the largest contributor to Viking Tech's revenues, according to Wei. Thin-film resistors now account for 55% of company sales.
In addition, Viking Tech's deployment into the market for LED heat dissipation plates is expected to bear fruit in 2011. Wei said the company is looking to expand monthly capacity for the segment to 200,000 pieces by the end of 2011 from the current 50,000 units on the rising demand.
In other news, Viking Tech will be listed on Taiwan's Over-the-Counter (OTC) securities market on March 16. The company is currently listed on the Taiwan Emerging Stock Board (ESB).
Viking Tech generated revenues of NT$745 million (US$25 million) in the first three quarters of 2010 with a 42% gross margin. In 2009, the company saw revenues increase 42% to NT$614 million, but gross margin slid from 44% in 2008 to 25%.