Berkshire's Nantong New Plant Catches Up with mSAP Process Demand for Optical Modules, Remains Optimistic for the Second Half

The new plant in Jiangsu Nantong, built by PCB manufacturer Berkshire (6141-TW), has been fully completed. Meanwhile, analysts are paying attention to Berkshire's Nantong plant, which has introduced the mSAP (Modified Semi-Additive Process) to meet the strong demand for optical modules in the optical communication market. Additionally, the company expects positive news about 800G products in the fourth quarter.

Berkshire's new plant in Jiangsu Nantong is improving operational efficiency. In addition to the return of orders for Chinese brand smartphone boards, the production capacity planning of the Nantong new plant has already prioritized the development of optical module production lines. In the market, Taiwanese companies such as Chen Ting-KY (4958-TW) and Hua Tong (2313-TW) have limited mSAP process production capacity, and analysts point out that Xin Xing (3037-TW), while possessing mSAP process capabilities, is busy with the oversupply of IC carriers and cannot spare any attention.

Optical module boards from Berkshire Technology's Nantong plant are already being sent to customers for sampling, and concrete results are expected in the fourth quarter. This aligns with Berkshire's current operational strategy and policy of reducing the revenue share of consumer electronics.

A Berkshire executive pointed out that with the increase in smartphone board orders, the revenue share in June has seen the Nantong plant's revenue rise to match the combined revenue of small-scale plants and sample board plants in Taiwan. At the same time, optical module boards from Berkshire Technology's Nantong plant are already being sent to customers for sampling, and concrete results are expected in the fourth quarter. With the expansion of the Nantong plant's operating scale, the overall performance of Berkshire is expected to improve.

Berkshire plans to reduce its capital to offset losses, with a reduction of approximately 20.602%, and will proceed with a private placement of cash increase, which will help ensure financial health.