CIRTEK Holdings Philippines Corp. on Thursday said the new equipment obtained by its semiconductor unit will boost its manufacturing capacity by 25% in the second half of next year.
“This is at the back of the Cirtek Group’s manufacturing capacity already running at 100%,” Cirtek Holdings said in a disclosure on Thursday.
Cirtek Electronics Corp. began procuring new equipment earlier this year. The new units will support the orders it booked in the first quarter.
Three customers were secured from “major telecom players in Europe,” Cirtek Senior Vice-President for Marketing Tony Callueng said.
Cirtek also took note of the bright outlook for the industry.
Citing a market research report from the Integrated Circuit (IC) Insight, the IC market is said to grow by 24% this year due to a 21% increase in shipments and a two percent bump in average selling price.
In a separate report, IC Insights also forecasts sales for the IC market to grow to over $500 billion this year.
With a global chip shortage looming as demand continues to rise, Cirtek said it is collaborating with customers to address the issue.
“Due to the industry’s bullish outlook, supply chain backlogs, and chip demand outpacing supply, customers have even started to consign equipment to Cirtek as insurance for production capacity on top of Cirtek’s own internal equipment,” the company said.
Aside from this, Cirtek also sees a growing trend in products in the internet of things, wireless communication such as 5G deployment, medical devices and wearables.
Shares of Cirtek at the stock exchange went down by 1.62% or 10 centavos on Thursday, closing at P6.08 each. — Keren Concepcion G. Valmonte
