Taiwan's backend house Tong Hsing Electronic Industries is set to raise quotes for ceramic substrates later in the second quarter of the year in response to increasingly strong demand for automotive and plant lighting applications, according to company president Heinz Ru.

Ru said Tong Hsing has sustained full capacity utilization for ceramic substrates as demand for processing automotive CIS modules and LED head lights has rebounded significantly since the fourth quarter of 2020, while greenhouse plant lighting and other new applications are also showing robust demand for such substrates.

The company has reported its first-quarter 2021 revenues slipped 4.4% sequentially but surged 60.8% on year to NT$3.141 billion (US$112.17 million), with revenues for ceramic substrates shipments up 10.53% on quarter reaching NT$737 million. Its net earnings for the quarter jumped 76.1% on year to NT$479 million.

Ru said price hikes for ceramic substrates will push up Tong Hsing's gross margins and enable a single-digit sequential increase in its overall second-quarter revenues, which will also be bolstered by a notable surge in demand for RF and high-capacity power modules.

Ru disclosed that Tong Hsing will spend most of its 2021 capex on expanding automotive CIS packaging capacity at its plant in Hsinchu, northern Taiwan, while also continuing investment in capacity expansion for ceramic substrates and RF modules.

The company's automotive CIS packaging business is gaining a stronger growth momentum than its handset CIS services, and will see a higher revenue contribution ratio in 2021, according to Ru.