Notebook hinge maker Sinher Technology is installing two more batch furnaces to expand in-house MIM (metal injection molding) production capacity to meet growing demand, bringing to six the total number of such furnaces by the end of 2017 to achieve a self-sufficiency rate of 50%, up from the present 30-40%, according to company sources.
The firm's chairman Su Ding-hong said that with the growing application of MIM process in notebook hinge design and production, Sinher will gradually boost its MIM self-supply rate to 70-80% in the second half of 2018.
Su stressed that vertical integration ability and yield rate concern are the two most crucial factors concerning whether suppliers of electronics parts and components can boost their gross margins, and therefore his company will continue to leverage its vertical integration capability to tap into the market for midrange to high-end notebook models, and will also further improve the firm's MIM yield rate, now standing at 80%.
Among Taiwan notebook hinge suppliers, Sinher has taken the lead in gross margins. For instance, the company recorded gross margins of 37.21% for the third quarter 2017, compared to Shin Zu Shing's 26.95% and Jarllytec's 22.75%. Over the past six quarters, Sinher's gross margins have stayed at high levels of 34-38%.
Sinher mainly ships its notebook hinges to vendors of non-Apple models, and the hinges contribute up to 90% of the firm's revenues, with 40% of the shipments involving unit price of US$3, compared to the average market price of only US$1. Su said that his company has been actively developing higher-price notebook hinges, such as four-axis dual hinges which involve sophisticated processing technology.
Company statistics show that Sinher's shipments for the first 10 months of 2017 declined 12% on year in volume, but its revenues of NT$2.018 billion (US$67.26 million) for the same period posted an annual growth of 2.68%, mainly bolstered by higher ASPs.
Sinher Technology chairman Su Ding-hong.
Photo: Michael Lee, Digitimes, November 2017
