Taiwan's protective components makers are expected to see their third-quarter revenues grow sequentially on strong demand for automotive applications, with their order visibility for such applications clear through the fourth quarter, according to supply chain sources.

Makers including Thinking Electronic Industrial, Polytronics Technology and Fuzetec Technology will see shipments of diverse car-use protective components grow significantly in the third quarter, driven by substantial shipment increases of automotive chips, the sources said.

Thinking has reported its June revenues rose 40.47% on year to NT$658 million (US$23.50 million), and second-quarter and first-half 2021 revenues both hit record highs of NT$1.961 billion and NT$3.719 billion, up 30.99% and 43.46% on year, respectively.

The company is running at full capacity for almost all its product lines such as negative temperature coefficient (NTC) thermistors, metal oxide varistors and temperature sensors for notebook, household electric appliance and automotive applications, and its order visibility for the components is clear throughout 2021, the sources said, adding that such components adopted for EVs are 5-10 times more than used in traditional autos.

Polytronics saw its June revenues shoot up 150.56% on year to NT$319 million and second-quarter revenues also surged 48.81% sequentially and 100.01% on year, mainly because the thermal clad dielectric (TCLAD) material business unit in the US acquired from Germany's Henkel has started to contribute revenues since May this year, the sources said.

The acquisition has enabled Polytronics to directly tap into the supply chains of first-tier international automakers with its thermally conductive boards (TCB) for lighting and power supply applications, with double-digit shipment increases driven by rapid recovery of the global car market, the sources continued.

Fuzetec's second-quarter revenues slightly expanded 1.94% sequentially to NT$138 million, with January-June sales rising 39.52% on year to NT$275 million. The company is expected to see its shipments of various polymeric positive temperature coefficient resettable fuses for automotive and industrial control applications to grow over 20% on year in 2021.