CCL maker Iteq expects to enjoy sequential revenue increases through June, driven by a pick-up in demand for servers and 5G base stations.

Iteq said its CCL shipments for sever boards will grow sequentially in the second quarter, and orders for 5G infrastructure applications from Chinese clients are expected to rise starting April, promising good growth momentum for first-half 2021.

The company's combined ratio of shipments for server, networking, storage and 5G base station applications dropped to 45% in fourth-quarter from 63% in second-quarter 2020, due to a significant rebound in shipments for automotive, handset and consumer electronics applications. But Iteq expects the ratio to pick up gradually through first-half 2021 as clients in the segments are expected to increase shipment pull-ins in the second quarter.

Iteq's board of directors has approved a US$80 million capacity expansion plan at its manufacturing site in China's Jiangxi province, aiming to boost its monthly capacity to 1.2 million pieces in late first-quarter 2022.

The company said it will move to negotiate with clients about hiking its quotes to reflect increased materials costs.

Its 2020 revenues rose 6.85% on year to NT$25.422 billion and net earnings increased 8.24% to NT$2.666 billion.