King Yuan Electronics (KYEC), a Taiwan-based firm specializing in IC testing, has pointed out a number of factors which the prospect for its 2012 business operation will depend on.
Solutions to Europe's debt crisis and economic problems in the US, Japan and other developed countries are among those determining the industry climate in 2012, said KYEC chairman CK Lee. Meanwhile, demand in emerging markets and that in China prior to the Lunar New Year are the other contributing factor, Lee indicated.
If a recovery takes place in those mature markets and demand in China and emerging markets continues to see robust growth, the year 2012 is going to be impressive, Lee noted.
KYEC's capital spending for 2012 will be carefully controlled, said Lee, adding that the company is more aware of supply and demand issues and climate changes to avoid being eliminated from the industry that becomes more challenging and increasingly competitive.
KYEC now has over NT$5 billion (US$165 million) in cash on hand, and can borrow a similar amount of cash from banks, Lee pointed out. The financial capability will support KYEC to go through bad times that might occur in the future, Lee added.