LED chip and Si-based sensor chip maker Tyntek has begun small-volume trial production at its 6-inch epitaxial wafer factory and will gradually expand monthly production capacity there from 10,000 wafers at present to 30,000 units, according to company chairman Bosco Foo.

The factory is expected to reach break-even operation in fourth-quarter 2021, Foo said.

Tyntek has received orders in excess of its production capacity, with shipments scheduled until fourth-quarter 2021, Foo noted. Due to full utilization of capacity and rises in material costs, Tyntek hiked quotes by 5-10% in first-quarter 2021 and will further raise them by 10-15% for follow-up orders in the second quarter, Foo indicated.

The lead time for material supply has been prolonged from six weeks to 8-12 weeks, showing tight supply of materials, Foo said, adding Tyntek is giving priority to clients accepting higher pricing and to orders with higher margins.

For Ennostar's investment of NT$3.0 billion (US$106 million) to acquire about a 10% stake in Tyntek, Tyntek hopes that Ennostar can help it gain additional sales channels and access international clients, Foo indicated.

Tyntek chairman Bosco Foo
Photo: Michael Lee, Digitimes, April 2021