TPK Holding will double its touch-enabled notebook-use LCD module (LCM) capacity by year-end 2020 and further expand it to four times as much as the current level by early 2021 to meet increasing demand for notebooks and tablets supporting remote work and study, according to company CEO Leo Hsieh.

TPK has seen its earnings improve significantly in recent months, fostered by robust shipments of notebook and tablet touch modules, Hsieh said at the company's investors meeting, expecting demand induced by the stay-at-home activities to stretch through the third quarter.

The company saw its net profit surge 670% on quarter and 470% on year to NT$308 million (US$10.51 million) in second-quarter 2020, in which revenues totaled NT$28.05 billion, down 0.5% sequentially and 1.4% on year.

Shipments of touch modules for notebook and tablet applications grew 16% and 27% sequentially in the second quarter, offsetting the adverse impact resulting from a 36% decline in shipments for smartphone applications, Hsieh noted.

For the first half of 2020, net profit totaled NT$348 million, increasing 350% from a year earlier. EPS for the period stood at NT$0.85.

TPK is expected to see its sales expand by 15-20% sequentially in the third quarter, driven by peak seasonal effects, according to industry observers.

TPK also experienced strong shipment growth of its large-size silver nanowire-based touch solutions over the past two months, Hsieh noted, adding that the company is expanding the applications of the silver nanowire solutions to include touch sensing modules, cover glasses and other module products.

TPK's capex budget for 2021 is expected to reach NT$3 billion compared to NT$4-6 billion spent in previous years, according to company's CSO Freddie Liu.

By DIGITIMES