Taiwan-based Nan Ya PCB is gearing up to further upgrade its process technology and adjust product portfolios seeking to fully swing to profitability in the entire 2019 by cashing in on increasing demand for higher-end products for 5G applications, according to industry sources.

The sources said that Nan Ya has been actively proceeding with deployments in network communication, wearable devices and high-performance computing sectors to counter lingering growth stagnancy in the PC market.

Such efforts have started to pay off since the third quarter of 2018, when the company returned to profitability on robust shipments of SiP (system in package) substrates, ABF (Ajinomoto build-up film) substrates, and PCBs. In the quarter, the company saw combined revenue ratio for network communication, wearable devices and other consumer products surge to a high of 70%, and the ratio for automotive electronics and HPC sectors also neared 20%.

IC substrates and PCBs needed for network communication equipment to support 5G infrastructure construction will be a major revenue growth driver for Nan Ya in 2019, the sources said, adding that higher unit prices for 5G-use substrates and PCBs are also expected to boost the company's earnings performance.

Meanwhile, increasing incorporation of SiP substrates into ever-slimmer consumer devices will also significantly drive up Na Ya's revenue records in 2019.

On another front, ABF substrates are increasingly demanded to support HPC and AI chip production and will therefore become a new growth niche product Nan Ya will focus on in 2019. Revenue ratio for the high-end substrates remains low, but Nan Ya is striving to boost their yield rates for higher profit margins.

Na Ya now maintains the most stable revenue and profit performances in the automotive electronics sector, especially ADAS and power transmission system components showing significant growth space. The company remains optimistic about prospects for the sector in 2019.