Diode maker Eris Technology expects its profits to surge in 2021-2022 with gross margin likely to top 40% thanks to continuous production cost reductions enabled by new manufacturing process, according to company sources.

The company's revenues for October 2020 spiked 48% sequentially to NT$120 million (US$4.21 million), as it began to fulfill rush orders from clients in the US and Europe ahead of the year-end shopping season, the sources said.

Eris said the festival demand for MOSFETs and diodes has grown robustly, particularly for applications supporting remote servers, notebooks, handsets, and new-generation game consoles.

Eris chairman EC Chang noted its subsidiary Yea Shin Technologies has developed 6-inch GPP (glass passivation pellet) process for producing diodes, which can significantly reduce wafer procurement cost and help achieve record gross margins and net earnings for the company in the next two years.

Chang continued that Yea Shin has seen its monthly wafer processing capacity ramp up steadily to 20,000 pieces currently from 3,000 it registered before being acquired by Eris in July 2018, with capacity utilization also rising sharply to 80% from 15%.

Chang said Eris will continue working towards fully automated production, so that its products can more easily meet process requirements set by first-tier automotive clients and obtain validations faster.