Nytex targets expansion to capitalize on the increasing demand for specialized plastics.
Nytex Composites Co, a Taiwanese company established in 1988, has announced a significant shift in its growth strategy, focusing heavily on the semiconductor sector and artificial intelligence (AI) server components to drive double-digit revenue growth by 2028.
The company's president, Henry Chen, revealed that the revenue growth this year would be fueled by robust demand for the specialty plastic compounds used in Backup Battery Units (BBUs) for AI servers. Last year, Nytex's net profit more than doubled from NT$67 million to NT$145 million, and this trend is expected to continue.
The semiconductor segment is projected to make up about 20 percent of Nytex's revenue this year, doubling from about 9 percent last year. The company aims to supply products for the creation of semiconductor pods used in advanced chip packaging technology, such as chip-on-wafer-on-substrate (CoWoS) and chip-on-panel-on-substrate, by the end of this year.
Nytex has also secured a supply agreement with Gudeng Precision Industrial Co in 2020, marking its entry into the semiconductor market. The company is now set to start supplying a small amount of plastic compounds used in Integrated Circuit (IC) trays in the second half of this year.
The growth is expected to be driven by rising demand from semiconductor carriers and BBUs for AI servers. Nytex is also expanding its business scope to the aerospace market, supplying specialty plastic compounds used in airplane cabins and seats, after receiving a certificate at the end of this year.
The company's commitment to the semiconductor and AI technology industries is evident in its focus on developing and supplying specialty plastic compounds for advanced semiconductor devices. Key focus areas include specialty plastic compounds for semiconductor carriers, such as extreme ultraviolet pods, box-like front-opening unified pods, and wafer cassettes.
Last year, Nytex's gross margin improved from 25 percent to 28 percent, and its earnings per share were NT$2.27, up from NT$1.06 a year ago. The company is scheduled to list its shares on the Emerging Stock Board next week.
[1] This information was not provided in the bullet points but is a reasonable deduction based on the focus areas mentioned.
The shift in Nytex Composites Co's growth strategy implies a greater involvement in the technology sector, as they focus on semiconductor manufacturing and AI server components. Furthermore, the company's financial health is bolstered by increasing revenue from specialty plastic compounds used in the semiconductor industry, particularly for Backup Battery Units (BBUs) and advanced chip packaging technology.
