A leading supplier of flexible printed circuit (FPC) materials, TAIFLEX Scientific Co.,Ltd (8039.TW), held an earnings call on the 24th, revealing promising developments at its newly opened Thailand plant. The plant, which began operations in May 2024, has already surpassed expectations. According to General Manager Jiang Zonghan, several international customers have successfully validated the plant and its equipment, paving the way for mass production by 2025. The company also noted that many other FPC manufacturers are expanding in Thailand, and TAIFLEX plans to scale up in response to this regional trend.

TAIFLEX's Thai plant is strategically positioned to meet the growing demand for supply chain diversification, catering to both international and Southeast Asian customers. The company's expansion aligns with the broader industry trend, aiming to strengthen its position in the global market.

In addition to its FPC materials business, TAIFLEX is also making strides in the semiconductor materials market. The company highlighted its expertise in Film Type technology, particularly in the production of Release Layers and Temporary Bonding Layers used in semiconductor packaging. While the industry has traditionally used liquid-based materials processed through spin coating, TAIFLEX has observed a rising demand for Film Type products. This trend could lead to a shift toward Film Type materials in semiconductor manufacturing processes.

TAIFLEX has already begun product sampling and testing with several semiconductor customers. If successful, these products could be integrated into customer product lines by the end of 2025 or early 2026, further driving market adoption.

On the financial front, TAIFLEX reported a strong performance in the first three quarters of 2024, with net profit reaching NT$571 million, up 54.57% year-on-year. Revenue for the first ten months of 2024 exceeded NT$8.45 billion, a 25.47% increase from the previous year. However, the company remains cautious for the fourth quarter, expecting a more significant seasonal decline than in previous years, as it focuses on maintaining stringent order quality control and ensuring customer creditworthiness.

Looking ahead to 2025, TAIFLEX is optimistic about moderate recovery in the consumer electronics sector, driven by increased demand for fine-line materials, high-frequency components, and semiconductor applications. Despite the positive outlook, the company emphasized that it is not focusing solely on revenue growth. Instead, it is prioritizing adjustments to its customer base and order structure to balance profitability and risk.

In terms of product applications, approximately 80% of TAIFLEX's materials are used in consumer electronics, with less than 10% in the automotive sector. The company expects steady demand in the consumer electronics market but sees intense competition in the automotive sector. For 2025, TAIFLEX anticipates peak revenue in the second and third quarters, with a slower first and fourth quarter.

As TAIFLEX positions itself for future growth, it remains committed to leveraging its technological advantages and refining its strategies to navigate both the FPC and semiconductor material markets.