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TUC Announces Plant Expansion and Financial Report
December 26, 2017 | TUCEstimated reading time: 1 minute
Taiwan Union Technology Corporation (TUC), manufacturer of copper-clad laminates (CCL) and prepregs for electronic interconnects, reported first half earnings per share of NT2.36. TUC continues to expand capacity for high-speed substrates, spending NT140 million to buy an adjacent property. TUC is expected to invest NT1.46 billion to build and equip the state of the art plant. The new plant is expected to begin operations in 2019.
TUC production includes CCL, prepregs and high-speed substrates. CCL and prepregs counted for about 80% of the shipments and high-speed substrates for about 20%. The main production base includes one plant and company headquarters in Taiwan and two plants in mainland China located in Changshu and Zhongshan. TUC’s focus has been on high Tg base materials as well as high-speed, low loss products. For IC carrier material, the dielectric constant (Dk) will affect the signal transmission speed, and the dissipation factor (Df) will affect the quality of the signal transmission. When these two factors are optimized in the base material, lower signal delay (Signal Propagation Delay Time) and reduced signal transmission loss (Signal Transmission Loss) can be achieved. With these factors in mind, TUC developed base materials with fast transmission speed and improved signal integrity with its Thunderclad line of products. The market demand for these products has been mainly in servers, base control panels and storage devices. TUC enjoys a leading technological position in the high Tg and low Dk products for the domestic industry. TUC is the first to mass produce for the 100G switch substrates.
Benefiting from the high growth of high-speed transmission products, TUC performed well in the past two years. In the first half of 2017, consolidated revenue was NT7.81 billion, the operating gross profit was NT1.67 billion, and the consolidated gross profit margin was 21.4%. Finally, the pre-tax profit of NT760 million was realized with an after-tax profit of NT570 million, generating earnings per share of NT2.36.
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