Added Orders Hit TXC for iPhone 5 Crystal Oscillators

TXC Corp. has revised upward its shipments of crystal oscillators for August to 10 million units, up from originally planned 6 million units, mostly thanks to huge added orders from supply chains of iPhone 5s.

Industry executives pointed out that the orders surged due to Sharp Corp.'s success in boosting yield rate of iPhone 5's built-in touch screens from 40% to critical mass.

Originally, insufficient yield rate at Sharp had kept industry executives worried about iPhone 5 supplies.

Now, TXC, the primary supplier of crystal oscillators to iPhone 5's built-in touch screens, has been pushed to increase the supply to 10 million units in August and 15 million units in October since Sharp has fixed the low-yield problem with its built-in touch screen production.

TXC supplies three of the five oscillators required by iPhone 5, which uses one more oscillator than predecessor iPnone 4, in which two of the four oscillators are provided by TXC.

According to industry executives, iPhone 5's crystal oscillators command higher profit than iPhone 4's, inspiring estimates that the brisk additional orders would considerably increase the company's gross margin for the third quarter by 10% sequentially.

In July, the company had consolidated revenue of NT$923 million (US$30.7 million at US$1:NT$30), increasing 3.9% from a month earlier and marking the third highest of the company's monthly revenue.

Industry executives expected the added orders to push up the company's monthly revenue to new highs in October and September.

source & copyright: CENS