Metal mask manufacturer Taiwan Xuhui expects global OLED panel demand to rise 31th,July,2020

                                      Taiwan Xuhui Applied Materials Co., Ltd. is a manufacturer of common metal masks (CMM) required for the production of AMOLED panels. CH Chao, chairman of Xuhui, predicts that as the demand for AMOLED panels in the smartphone industry picks up, demand for the company's products will rebound in the third quarter of 2020.

Chao also expressed optimism about the prospects of ordinary metal masks in 2021, because the penetration rate of smartphones based on aging technology will continue to rise in the next few years. The company predicts that the demand for OLED smart phone panels will increase to 513 million in 2020, higher than the 471 million in the same period last year, but global smart phone shipments this year are expected to drop by 13% year-on-year.

In response to the expected demand in the OLED smartphone sector, Xuhui is expanding the production capacity of its Hubei Huangshi plant. Chao said that the capacity increase will be completed in the fourth quarter of 2020 and will start to contribute revenue in 2021.

At the same time, Chao said that Xuhui will expand its business beyond metal masks, including other semiconductor products, to reduce the operational risk of focusing on a few product lines.

Xuhui invested NT$270 million (US$91.63 million) to acquire a 43% stake in microwave vacuum tube supplier Wave Power and became its largest shareholder. Starting from the third quarter of 2020, the revenue generated by Wave Power will be listed in Xuhui's financial report.

Xuhui announced its June revenue of NT$34.79 million, an increase of 23.06% from the previous month, but a decrease of 57.33% from the same period last year. So far this year, Xuhui's revenue has totaled NT$239 million, a year-on-year decrease of 47.01%.