Shenmao Technology has raised its quotes for solder paste products by a double-digit rate recently and could continue to hike prices in May due to rising tin prices in the global market, according to industry sources.

Tin prices have reached US$33,000 per ton recently, increasing over 6% on average from the levels recorded in March, the sources noted.

Shenmao revealed that it has received more orders for BGA solder balls recently as the supply chain has been affected by the Japan earthquake. Based on its current capacity, Shenmao will be able to fulfill all orders and have to wait until May to see if its sales have been affected by the quake.

However, order visibility of PV ribbons for solar panels has shortened to one month compared to three months in the first quarter as a number of countries have reduced their subsidies for the installment of solar power devices, the company noted.

Shenmao has also decided to invest US$2 million to set up a solder paste plant in Huizhou, China. To finance the investment project, the company plans to increase its capital by issuing 7.5 million new shares and also issue NT$400 million (US$13.79 million) worth of convertible bonds. The new shares will be priced at NT$40 per unit.