Cheng Uei to Step Up Output Expansion in China

Taipei, Oct. 20, 2010 (CENS)--To fill a flood of orders from Apple, HTC and Nokia, Cheng Uei Precision Industry Co., Ltd., a Taiwanese maker of connectors and adaptors for electronic products, plans to step up output expansion by constructing new factories in China, according to the firm.

Witnessing its existing supply already lag behind demand now due to influx of contract orders, Cheng Uei, who runs a factory in China's Dongguan and Suzhou each at present, confirmed that it has decided to kick off construction of new ones in Chengdu, Wuhan and Zhengzhou at a time in the fourth quarter of this year to cope with the situation.

Prosperity of the global handset market has benefited Cheng Uei this year, as Apple and HTC have increased their purchases of handset connectors and adaptors with the firm, and Nokia has also switched its contract orders originally sent to Japanese and Chinese makers to it, not to mention that Korean handset vendors as Samsung and LG are also going to raise their orders with the firm starting next year.

Thriving on a booming handset market, Cheng Uei scored NT$6.456 billion in sales revenue for September, hitting an all-time high. The firm noted that connectors and related parts will contribute NT$30 billion at least to its total revenue this year. The contribution is hopeful to rise to NT$40 billion next year.

With the upcoming Christmas and year-end sales seasons to simmer market demand, the firm, whose connectors and adaptors have been widely used in some hot-sellers, such as iPod, iPad, iPhone, Kinect and Amazon's e-book readers, is expected to continue posting rosy sales and shipment in October, or throughout the fourth quarter of the year.