Taiwan-based handset component makers enjoy sales growth in July

Silitech Technology had its second consecutive record revenues of NT$1.28 billion (US$39.7 million) in July due to rising keypad shipments for new Nokia and RIM handset models. Revenues for the month rose 9% on month and 38% on year. The company's main revenue sources for the month were handset keypads and handset casing, which combined to represent 91% of sales. Automobile component is also a growing business with about a 7% share.

Despite the rise of touchscreen handsets, market watchers believe devices with both physical keypad and touch screen will continue to be popular and projects NT$3.65 billion in sales for the third quarter.

Ichia Technologies, which also supplies to RIM, posted July revenues of NT$867 million, up 20% on month and 43.07% from a year ago for the highest monthly total thus far in 2010. Ichia has moved from manufacturing handset keypads to providing integrated modules that include various components including keypads, casing and light-guide plates. The company is confident that third-quarter revenues should increase 20-30% sequentially. Full-year revenues could rise 24% from a year ago to NT$9.6 billion, according to forecasts by market watchers.

Merry Electronics also hit a new sales record for 2010 in July with NT$720 million in revenues, up 46.03% on year. The company, which produces handset speakers, should see revenues continue to rise each month from August to November and maintain a gross margin of 22.5-23%, market watchers indicated.