Cheng Uei Ventures Into Optical Touch Segment

Taipei, Dec. 7, 2010 (CENS)--Cheng Uei Precision Industry Co., Ltd., a world-caliber supplier of connectors for electronic devices, has decided to venture into production of optical touch components to tap the booming market for digital convergence technologies, confirmed Guo Tai-chiang, chairman of the firm.

To adapt itself to an ever-changing market, Guo indicated, Cheng Uei has gradually phased out contract production of handsets, and has been increasingly focused on emerging segments of optical touch modules, LEDs and lithium batteries.

On optical touch business, Guo mentioned that his firm has been planning to team up with TPV Technology Ltd., the world's largest TV maker, and Pixart Imaging Inc., a Taiwan-based developer of CMOS (complementary metal oxide semiconductor) image sensors, to set up a joint venture on production of optical touch modules.

Industry insiders noted that the joint venture will source touch sensors and ICs from Pixart and optical touch components from Cheng Uei, while relying on TPV's enormous influence in the monitor industry to cash in on rapidly growing demand for Internet TVs and all-in-one PCs. Noteworthily, TPV is expected to ship 15 million LCD TVs and 55 million units of LCD monitors and all-in-one PCs to sustain its No. 1 position in the industry this year, indicating its existing huge customer base, which will benefit the joint venture considerably.

After making business adjustments, Guo expected his company to rake in rosy EPS (earnings per share) of between NT$5 and NT$6 in 2011, which will represent a 30% increase from the corresponding figure for 2010.

In addition, the firm has been actively dedicated to channel distribution of 3C products across Taiwan and mainland China, aiming to open 100 retail stores in three years. Presently, the firm has 27 stores in Taiwan, and three in Hong Kong, and has just opened its first one in China's Nanjing.