TPK shares boosted by partnership with Japan firm
CNATAIPEI -- Shares of TPK Holding Co., one of Taiwan's leading touch panel makers, got a boost Friday from an announcement that it will team up with Japan-based Nissha Printing Co. to develop silver nanowire ink processing technology, dealers said.
October 5, 2013, 12:01 am TWN
As the cooperation targets the low- and mid-range smartphone market, in particular the growing China market, many investors are upbeat about TPK's earnings prospects due to the new business strategy, the dealers said.
Shares of TPK rose 2.92 percent to close at NT$282.00 (US$9.59) with 6.95 million shares changing hands, while the weighted index on the Taiwan Stock Exchange ended up 0.06 percent at 8,364.55 points.
TPK shares opened sharply higher in the wake of the partnership, and momentum continued into the end of the session as bargain hunters rushed to pick up the stock after recent consolidation, the dealers said.
In a statement released a day earlier, the Taiwanese company said Nissha has agreed to put US$6.25 million into TPK's subsidiary, TPK Film Solutions Ltd., while the local parent company will raise its investments in the unit by US$4 million.
After completion of the transaction, TPK Film's paid-in capital is expected to rise to US$25 million, with TPK to hold a 65 percent stake and Nissha to own a 25 percent stake in the joint venture. U.S.-based Cambrios Technologies Corp. will retain a 10 percent stake.
Through the fund injections by Nissha and TPK, the three partners will work together to develop silver nanowire ink processing technology for conductive material production.
TPK said it is scheduled to come up with a prototype of silver nanowire ink processing technology based-touch screens in the fourth quarter of this year, and is expected to start commercial production in the second quarter of 2014 with an initial monthly production capacity of 2 million units.
TPK said production of the new touch panels is expected to grow rapidly in the second half of 2014, adding the company aims to supply displays for production of 5-inch and 6-inch smartphones.
Market analysts said silver nanowire ink processing technology is expected to cut TPK's production costs by 10-20 percent, a positive development that could boost TPK's profit margin at a time when the company is eyeing the lower-cost smartphone market.
In addition to screen production for handheld device use, TPK said the partnership with Nissha is expected to help the Taiwanese company to enter the Japanese car market, in which use of touch panels is on the rise.