Optical filter maker Apogee Optocom has expressed optimism about its outlook this year, citing a pick-up in demand for 5G and datacenter applications.

With South Korea, China, Japan and the US all having resumed 5G infrastructure construction, Apogee's 5G business is expected to enjoy sharper growth in 2021, according to company president Hung-Li Lan.

Although the US trade ban on Huawei had undermined overall demand for 5G components, the market has regained growth momentum with Nokia and Ericsson having bigger presence in the 5G market, Lan pointed out.

Apogee chairman In-Kun Li also noted that the company is currently the second largest color filter maker worldwide and will be pushing to strengthen its production capability and attract talent in the next few years.

Lan expects South Korea to restart construction of 5G infrastructure at the end of first-quarter 2021 as the country had spent the whole second half of 2020 digesting its excess inventory, while demand for 5G components from Japan will remain steady due to the Olympic Games.

Other than the 5G business, Apogee also sees rising orders for semiconductor equipment coating services, but the business so far only has limited contribution to the company's revenues. Apogee is also collaborating with Formosa Plastics to develop biomedical products and is currently providing coating services to components used in virus-testing devices.

Apogee's consolidated revenues reached NT$710 million (US$24.7 million) in 2020, up 15.2% on year with gross margin reaching 53.2% and net profits NT$137 million, up 47.2% on year.

Apogee to push 5G and datacenter businesses in 2021
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