Latest news

Touch panel makers reducing capital in light of competition

2015-11-26

Many touch panel makers are resorting to capital reductions in light of revenue drops and decreased performance as a result of high competition in the market.

TPK has issued a capital reduction of NT$16.13 billion (US$495.5 million) on old and unused capacity for various fabs, while subsidiary Cando has issued limits on stock trading in light of a funding shortage that has reportedly increased from NT$76 million to NT$617 million.

HannsTouch Solution meanwhile reduced capital back in 2014 by 36.77% to prevent losses and increase its EPS, which proved effective for the company and has helped improve its financials.

Taiwan-based Wintek on the other hand delisted from the Taiwan Stock Exchange (TSE) in July 2015 in light of financial woes due to increased competitiveness.

Industry observers are also watching J Touch as it continues to face losses, and the company recently issued a capital reduction of NT$613 million following four years of continued losses. Young Fast Optoelectronics meanwhile saw revenues drop 60% on year in the third quarter of 2015.

Many of the makers have experienced performance declines due to competition from China makers coupled with a slowdown in smartphone, tablet, touch notebook and AIO orders, said market observers, adding they expect oversupply and price declines to continue into 2016.

Siu Han, Taipei; Alex Wolfgram, DIGITIMES [Wednesday 25 November 2015]

http://www.digitimes.com/news/a20151125PD205.html

 

[ BACK ]