Passive component material suppliers gearing up for 2012

Liton Technology is set to expand capacity for medium- to high-voltage formed aluminum foil to meet customer demand in 2012, while Laser Tek is expected to report a good first quarter thanks to rising orders for materials used to make chip resistors, according to industry sources.

Liton's factory has an existing monthly production capacity of 450,000 square meters of low-voltage formed aluminum foil, the sources indicated. Liton will gradually set up 36-54 production lines mainly for medium- to high-voltage formed aluminum foil, with related monthly capacity to reach up to 310,000 square meters, the sources pointed out.

Liton plans to install 30 new production lines for medium- to high-voltage formed aluminum foil at its factory in Sichuan Province, western China, the sources indicated. New capacity will go online in May to catch up with demand, the sources said.

Buoyed by strong demand for 01005-size chip resistors, Laser Tek has seen its resistor clients increase material orders for capacity expansion, the sources pointed out. Laser Tek is expected to report brisk results for the first quarter of 2012.

Laser Tek also offers SMT equipment, which will also buoy its sales performance in the first quarter, according to the sources. Foxconn Electronics (Hon Hai Precision Industry) and Quanta Computer reportedly are among its clients.