FocalTech drives IC prices up 10%, February revenue hits new high for the same period

IC design manufacturer FocalTech has benefited from the main products, integrated touch and screen driver IC (IDC) import projects continue to expand, coupled with the increase in IDC market demand, the supply chain revealed that FocalTech ’s IDC products this year Shipment volume in the first quarter has approached half of last year's level, and wafer foundry capacity is tight. The market has reported that IDC product quotes from FocalTech have increased by 5% -10%.

FocalTech does not respond to orders and product quotations. It only responds. This year, the IDC market growth trend is established. FocalTech operations are not affected by the new crown pneumonia epidemic, and its February revenue stood at 913 million yuan (NT $, The same below), a record high over the same period, an annual increase of 1.11 times, cumulative revenue of the first two months of this year 1.758 billion yuan, an annual increase of 92.3%.

Industry insiders pointed out that wafer foundry production capacity began to tighten in the second half of last year, which also caused IDC supply and demand to contract. The market has spread that starting in January, FocalTech has increased product prices in response to different specifications of IDC, an increase of about 5 % ~ 10%, people in the industry are optimistic that will drive FocalTech's second-quarter operation and profit, optimistic that FocalTech's operations will challenge double-digit quarterly growth rates.

IDC is currently FocalTech's most important product, accounting for about 50% of revenue. IDC shipments continue to increase this year. With the introduction of new Mux 1: 6 FHD products, it has a competitive advantage and is expected to be fast. To increase market penetration, industry insiders estimate that IDC's revenue share in FocalTech this year is expected to increase to 60%.

FocalTech pointed out that despite the city closure in mainland China, with the positive help of the continued expansion of the main product IDC import project, and the introduction of new products of Mux 1: 6 specifications in large numbers, the shipments in February increased Growth in January, while touch ICs, driver ICs and other products reflect off-season effects, and shipments have all decreased slightly from January, but overall, we have a positive view of operations.

According to the supply chain, FosunTech ’s competitor Synopsys sold Chinese IDC business last year to give Chinese capital, resulting in a vacancy in the market. (FocalTech) was less than 20% last year. However, in the first quarter of this year, with the large increase in IDC shipments, the market share rose rapidly and is currently close to 30%.