A homegrown semiconductor company is riding the wave of global demand for integrated circuits (IC) and is developing expansion plans to address the chips shortage worldwide.
Cirtek Holdings Philippines Corp. in a statement cited Integrated Circuit (IC) Insight’s market research that said worldwide IC market is expected to post a 24-percent increase this year, driven by a 21-percent jump in shipments and a 2-percent increase in average selling price.
“This is very encouraging news for industries in the semiconductor space,” Cirtek said.
“A growth rate of 24 percent would be the third largest increase in the global IC market over the past 16 years, being surpassed only by the 33 percent surge displayed in 2010 and the 25 percent increase registered in 2017 according to the IC Insights market research report,” the company said.
Cirtek said its unit Cirtek Electronics Corp., continues to collaborate with customers “to develop expansion plans to address the global chip shortage that the industry is experiencing.”
“In early first quarter, 2021, Cirtek Electronics started procuring additional equipment to support the surge in demand from its customers. This is at the back of the Cirtek Group’s manufacturing capacity already running at 100 percent. The new equipment will initially drive 25 percent additional capacity in the second half of 2022. This expansion is complemented with booked orders received,” it said.
Tony Callueng, Cirtek senior vice president for marketing, said the company secured three new customers in early 2021 from major telecom players in Europe.
“Due to the industry’s bullish outlook, supply chain backlogs and chip demand outpacing supply, customers have even started to consign equipment to Cirtek as insurance for production capacity on top of Cirtek’s own internal equipment,” Callueng said.
Callueng said Cirtek also sees “growing trends in products focused on internet of things (IoT), wireless communication (5G deployment), medical devices and wearables.”
