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Daxin gearing up for semiconductor materials

LCD chemical material supplier Daxin Materials aims to ramp up the production of semiconductor materials when its new plant, being built in central Taiwan, is completed in the third quarter of 2021, according to company chairman Cheng-Yih Lin.

While semiconductor materials will account for only 1-2% of Daxin's total revenues in 2020, Lin said his company sees semiconductor products have growth potentials and expects semiconductor revenues to surpass those of LCD's in the future.

Daxin saw its revenues dip 4.6% on year to NT$3.263 billion (US$115.96 million) in the first three quarters of 2020, with LCD materials making up the majority of the revenues. Its portfolios also include materials for high-end displays and advanced IC backend processes.

The company also expects its shipments of PS (polystyrene)-based interstitial materials for LCD panels and polyimide (PI)-based alignment films to China to expand significantly in 2021, said company executive vice president Kevin Chuang.

Daxin currently accounts for 40-50% of the global LCD PS interstitial material market and will continue to maintain its leading market position in 2021, Chuang stated.

Chuang added that the company is also expected to land orders for LCD PI alignment films and black matrix resists from new clients in the coming year.

He also claimed that the company's shipments of black matrix resist products to China will not be affected in 2021, even though the China government is to raise an additional 10% import duty on such products at the beginning of the year.