EZconn, a specialist in RF connectors and fiber optical devices, expects to post a 15% revenue increase in 2022 driven by robust demand for customized optical communication devices from clients in the US and Europe.

EZconn said clients in the US and Europe have placed long-term orders valid for more than one year, allowing the company to maintain stable revenue performance so far this year, despite IC shortages continuing to plague the supply chain.

The company expects its capacity utilization will rebound and stabilize starting in the second quarter of 2022, when the crunch of chip components is expected to gradually ease driving up the recovery of the overall optical communication equipment market.

EZconn noted its order visibility for 10G BOSA (bi-directional optical sub-assemblies) products is clear through the end of June 2022, with the prospect that 10G offerings will become mainstream applications for next year.

As the US has just approved a bill to invest US$65 billion to enhance its grid network and broadband infrastructure construction, EZconn is expected to land more orders for customized fiber optical solutions with higher gross margins from customers in the US, who will rely more on non-China suppliers under persistent trade tensions between both countries.

Company statistics showed that optical fiber communication products contributed 57% of its revenues in the third quarter of 2021, and RF connectors commanded 43%, down from over 50% in the past. EZconn estimated its shipments of optical communication devices to grow 20% on year in 2022 and those of RF connectors to stay flat.

The company's November revenue rose 15.17% on year to NT$226 million, and January-November sales surged 18.2% on year reaching NT$2.625 billion.