Hunan unit securing more US customers
Isu Petasys CEO Seo Young-joon said on Thursday that the company’s subsidiary in Hunan province in China has turned a profit in the second quarter.
It is the unit’s first profit since 2013, when Isu Petasys acquired the factory from Taiwan’s TTL.
Seo said the network printed circuit board (PCB) company is expecting the subsidiary to record an annual profit for the first time this year as well.
The unit has been recording operating loss between 10 billion won to 20 billion won up to 2020.
The CEO credited the turnaround to a focus on high-end productions. In the beginning, the Hunan business unit focused on PCB boards with few layers used in PCs and appliances. But Isu Petasys had changed focus to multi layer boards (MLB) afterwards.
Demand for telecom and network boards has increased recently which helped with the profits, Seo noted. MLB can be offered in 12 to 18 layers or over 18 layers, depending on application. The Hunan business unit mostly manufactures MLB with between 12 to 18 layers, but can also manufacture 20 layer MLB.
The Hunan unit’s customers have also shifted from mostly Taiwanese firms to US companies, the CEO said. Around 70% of sales comes from US customers at the unit, Seo said.
The CEO also shared the company’s plan to restructure its business in South Korea. It has recently secured lands for a fourth factory at its plant in Daegu. The fourth factory will have automation and process integration applied. The factory will ramp up production once Isu Petasys secures a new customer.
Isu Petasys was also looking to sell its factory and equipment owned by subsidiary Isu Exaboard at Ansan to a willing buyer. The plant had made high definition interconnection boards and flexible PCBs.
The Asan plant currently has equipment for substrate like PCB (SLP). The technology applies the modified semi additive process used in chip production to some of the layers on a smartphone board. Samsung Electronics has used SLP for some of its flagship phones for certain regions from 2018 to 2019 but it changed the board technology it uses since then due to low profitability. In contrast, Apple applies SLP to iPhones; it procures the board from AT&S.
Isu Petasys recently announced that it was ending Isu Exaboard’s operation. It was shifting focus from smartphones boars to those for networks.
Meanwhile, the CEO said Isu Petasys as a whole is also expected to turn a profit in 2021, backed by high demand for MLB from networks used in servers and data centers.