Techlink (stock code 688603) is about to see its overseas factory construction plan come to fruition.

On the evening of November 13th, Techlink announced its intention to invest 100 million yuan in building a production base in Thailand. The company stated that this investment aims to establish overseas supply capabilities and seize opportunities in expanding into international markets.

Thailand, as an emerging market economy, has recently attracted a significant portion of the printed circuit board (PCB) capacity transfer. Techlink's major clients have actively established production bases in Thailand as well. As of now, nearly 30 Japanese, Taiwanese, and mainland Chinese PCB companies have already settled or planned their presence in Thailand, with the majority being Techlink's existing or potential clients.

During a visit from specific parties for research purposes last month, Techlink mentioned its plan to establish overseas factories. "Prior to this, most publicly listed electronic circuit companies have announced their plans to build factories in Southeast Asia, with nearly 80% being Techlink's existing clients. At the same time, some clients have expressed their demand for overseas supply collaboration with Techlink starting in the third quarter of next year." Techlink stated that the company will soon include the overseas factory plan in the board of directors' deliberations. The initial step will be establishing a sales department, followed by gradual progress in overseas factory construction and production. "The overseas business is expected to be centered in Thailand, covering other Southeast Asian regions such as Malaysia and Vietnam."

Techlink emphasized that since most of the electronic circuit companies building factories in Southeast Asia were previously Techlink's clients, related electronic chemicals have already gained recognition from these clients. Additionally, Techlink possesses service and price advantages compared to international competitors, providing a solid foundation for gaining market share in overseas markets.

In the announcement disclosed on the evening of November 13th, Techlink stated that the investment in building a production base in Thailand will enhance the company's overseas supply capabilities, enable market expansion, and seize opportunities. The move aims to better meet the company's existing Southeast Asian orders and requirements, acquire incremental customers and orders, strengthen core competitiveness, and improve overall performance. Simultaneously, the overseas factory will allow the company to flexibly respond to macro-environmental fluctuations, adjustments in industrial policies, and potential changes in the international trade landscape that may have adverse effects on the company.

Techlink's positioning is to become a leading domestic enterprise specializing in the independent research and development and sales of functional wet electronic chemicals. The company has gained high market recognition in the PCB/carrier board sector, even breaking the monopoly held by foreign companies in certain product areas.

During the visit from specific parties for research purposes last month, Techlink discussed its outlook for the second half of the year. The company stated that there has been a recent increase in customer orders and capacity utilization, with sectors such as consumer electronics, automotive electronics, and AI showing signs of recovery. "Techlink continues to supply chemicals to customer production lines, replacing international competitors such as Amtech. Additionally, the company is continuously developing new customers and capturing more market share."

Regarding the progress of semiconductor advanced packaging and wafer-related projects, Techlink stated that the second phase of the Shanghai factory project has been launched. A planned investment of 50 million yuan will be allocated for the production equipment and workshop renovation of functional wet electronic chemicals related to semiconductors. The project is scheduled to commence production in January next year and will mainly focus on advanced packaging and TSV (through-silicon via) processes. There are also product plans for Damascus plating on wafers.

Techlink has also made its presence in the new energy sector, mainly involving lithium-ion copper foils and photovoltaic panels. In the field of lithium-ion copper foils, the company is close to finalizing product development to address issues such as adhesion of PP materials. Additionally, this area requires strategic cooperation and partnerships with equipment manufacturers. In the touch panel and display panel sector, the market is shifting towards metal mesh technology as a mainstream replacement for ITO technology. Techlink has maintained close communication and cooperation with several relevant customers. As the market expands, this area is expected to yield significant performance returns.

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Source: Securities Daily

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