Power inductor specialist King Core Electronics has seen clear order visibility for the next 3-6 months and may consider building additional capacity next year to satisfy customer demand, according to the Taiwan-based company.

Also a supplier of iron core and high-precision coil materials, King Core has run all its production lines at full capacity utilization with plans to expand capacity, the company indicated.

King Core expects its capex this year to reach a 10-year high.

End-market demand started picking up at the end of 2020, said King Core, adding that its existing production capacity has fallen short of customer orders since 2021.

Demand for automotive, networking, and smart home appliances applications was particularly strong in the first half of this year, King Core continued.

King Core has been diversifying its target markets in recent years, the company noted. Sales generated from orders for notebook-related applications fell as a proportion of company revenue to less than 10% in 2020, while sales from orders for automotive electronics applications came to 15-20%.

Nevertheless, the current shortage of notebook-use chips and components has prompted some customers to approach King Core for additional supplies, said the inductor maker.

King Core reported revenue climbed nearly 32% on year to NT$208 million (US$7.44 million) in the second quarter of 2021, with a gross margin reaching 31%.

King Core's cumulative 2021 revenue through July totaled NT$458 million, rising 36.7% from a year earlier.