Transcom to expand factory site in southern Taiwan
Julian Ho, Taipei; Joseph Tsai, DIGITIMES
GaAs device and foundry company Transcom has disclosed plans to expand its factory site at the Southern Taiwan Science Park (STSP) to satisfy robust demand for military applications.
The new capacity is expected to begin operation and generating revenues in the first quarter of 2022 and will be sufficient to satisfy any additional orders for the next three years, the company said.
At the moment, Transcom has a 4-inch GaAs foundry that is used to supply products for military devices, wireless network equipment, surveillance systems and base stations, while the new capacity will be used partly for backend power amplifier (PA) modules, the company noted.
The new facilities at STSP are set to begin construction by the end of 2020, and until they are operational, Transcom said it will adopt a two-shift overtime schedule to satisfy clients’ increased orders, which will also drive up the proportion of its overseas sales.
Transcom reported consolidated revenues of NT$288 million (US$9.82 million) and net profits of around NT$49 million for the first half of 2020, up 39.21% and 22.97% on year, respectively, with the gross margin remaining steadily at around 50%.
Transcom said its recent decision to withdrew its application for listing on Taiwan’s over-the-counter market was made in line with the company’s interests, and it will submit a new application at a more appropriate time later.
Some market observers suggested that Transcom is involved in Taiwan’s military industry, and its plan to go public will need to be okayed by the government.
Transcom declined to comment on speculations.
Transcom is expanding new capacity to meet robust demand for military applications
Photo: Digitimes file photo
