Cheng Uei wins big-ticket orders for cell-phone parts from int'l brands

Taipei, Sept. 30, 2004 (CENS)--Taiwan's Cheng Uei Precision Industry Co. Ltd. Recently won big-ticket orders for cell phone connectors, batteries and input/output (I/O) cables from some international brands and is actively expanding production capacity.

Cheng Uei has asked its subsidiary FoxLink Co., Ltd. To withdraw from its current plant in Tucheng (FoxLink rented some space from Cheng Uei), so that it can utilize the spare space to install new production lines.

Cheng Uei spokesman Liu De-bin did not confirm the new orders but said that his company is adjusting production capacity. The company currently ships about 2.5 million cell-phone batteries per month.

Cheng Uei's business has improved quarter by quarter this year. The company has been winning increasing orders for TV game consoles and MP3 players, in addition to advancement in cell-phone parts sales. The firm has been chosen by Sony Ericsson as a supplier of over 20 kinds of parts.

Cheng Uei currently produces cell-phone connectors, batteries, cables and housing. The Taiwan company won Nokia's certification earlier this year and became a qualified parts supplier to most big international handset brands, including Nokia, Motorola, Sony Ericsson and Siemens. Cheng Uei is also planning to step into such new fields as flexible printed circuit board (PCB) and handset digital-camera module to further boost its product comprehensiveness.

Some institutional investors pointed out that Cheng Uei would make massive shipments of cell-phone parts in the fourth quarter. The firm expected to score revenue of over NT$2 billion (US$58.82 billion at US$1:NT$34) from supplying Bluetooth accessories and batteries to a big U.S. brand and connectors to a European company.

With increasing orders for both cell-phone parts and consumer electronic products, a senior official of Cheng Uei said that his company is expected to record new high revenues in September and October. Generally speaking, the official added, Cheng Uei's business performance in the fourth quarter would be better than in the third quarter.