Taiwan's CCL makers Iteq and Elite Material (EMC) are gearing up to build additional capacity as demand from clients has outstripped their maximum capacity supply since the start of 2021, according to industry sources.

Iteq is set to ready a new monthly capacity of 600,000 pieces after the second-phase construction at its plant site in Jiangxi, China is completed in mid-2021 to support peak-season shipments in the third quarter, the sources said.

The company has also kicked off the third-phase construction at the same site, and commercial runs are scheduled for late 2021 or early 2022, with full monthly capacity set at 1.2 million pieces, the sources said, adding that its total monthly capacity will then reach 5.65 million.

EMC will have no additional capacity available this year, but will continue to optimize its existing production lines and boost yield rates. The company will ready a new monthly capacity of 300,000 pieces each at its plant in Huagnshi, China in June 2022 and at its Kunshan plant in the third quarter next year, respectively, the sources said. Its total capacity will then amount to 4.15 million pieces per month.

Both makers are expected to see their supply further tightened in the second half of the year, given strong peak-season demand in the third quarter for consumer applications and a significant rebound in demand for high-frequency/speed CCLs for 5G infrastructure applications, the sources said.