Chassis makers shifting focus to metal chassis productionAaron Lee, Taipei; Joseph Tsai, DIGITIMES [Thursday 29 October 2015]
Because of weakening demand for notebooks, plastic chassis-oriented makers such as Ju Teng have been suffering from weak utilization rates and have turned to focus on metal chassis production to survive.
Ju Teng’s plastic chassis utilization rate was about 65% in the first half of 2015 and is expected to rise to 70% in the second half thanks to increasing orders. However, the company is no longer purchasing new equipment and is gradually eliminating its old equipment to reduce capacity.
With Microsoft placing orders for its Surface 2-in-1 products and Hewlett-Packard (HP) ordering enterprise notebooks, the revenue contribution from Ju Teng’s metal chassis is expected to rise to account for 50% of the overall amount in the second half.
The notebook industry currently has three major plastic chassis suppliers: Ju Teng, Huan Hsin and Zhanyun (shanghai) Electronic (Quanta Computer’s subsidiary) and Ju Teng is the only player still profitable.
Ju Teng currently has 5,500 CNC machines to produce metal chassis, and related capacity is already fully booked for the second half. The company is planning to install 300-500 more machines in 2016 to meet demand from clients.