VANCOUVER, CANADA -- February 28, 2005 -- Nam Tai Electronics, Inc. (“Nam Tai” or the “Company”) (NYSE Symbol: NTE) announced that it has increased the production capacity of its Chip on Film (“COF”) by 40% in a further expansion to its flexible printed circuit (“FPC”) sub-assemblies business.
In response to a strong market demand and increasing customer orders for FPC sub-assemblies, Nam Tai has invested $2.2 million for 4 additional COF machines to augment its existing 10 COF machines. Taking into account the new machines, the production capacity of Nam Tai’s COF has increased from 2,500,000 chips per month to 3,500,000 chips per month.
COF is an assembly method for bonding integrated circuit chips and other components onto a FPC. This process allows for greater compression of the size of a product when assembled, thereby enabling the production and miniaturization of small form factor devices like cellular phones, PDAs, digital cameras and notebook PCs.
“Less than two years after it began manufacturing FPC sub-assemblies, Nam Tai has increased its production capacity for FPC sub-assemblies several times. Now it has outgrown its current production capacity. The strong demand for FPC sub-assemblies is driven by the rapid growing market of more sophisticated electronic products such as 3G cellular phones and other infotainment products that generally include more complex features and functionality,” said Mr. Joseph Li, Chief Executive Officer of Nam Tai. “Taking advantages of the continuously increasing applications of FPC sub-assemblies, we believe that we will continue to benefit from the large business opportunities arising in this area.”
About Nam Tai Electronics, Inc.
We are an electronics manufacturing and design services provider to original equipment manufacturers of telecommunications and consumer electronic products. Through our electronics manufacturing services operations, we manufacture electronic components and subassemblies, including LCD panels, LCD modules, radio frequency modules, flexible printed circuit sub-assemblies and image sensors. These components are used in numerous electronic products, including cellular phones, laptop computers, digital cameras, copiers, fax machines, electronic toys, handheld video game devices and microwave ovens. We also manufacture finished products, including cellular phones, palm-sized PCs, personal digital assistants, electronic dictionaries, calculators and digital camera accessories for use with cellular phones.
Nam Tai has two Hong Kong listed subsidiaries, Nam Tai Electronic & Electrical Products Limited (“NTEEP”) and J.I.C. Technology Company Limited (“JIC”). Interested investors may go to the website of The Stock Exchange of Hong Kong at www.hkex.com.hk to obtain the information. The stock code of NTEEP and JIC in The Stock Exchange of Hong Kong are 2633 and 987, respectively. Investors are reminded to exercise caution when assessing such information and not to deal with the shares of the Company based solely on reliance of such information. The results of NTEEP and JIC only represent a part of the results of the Company and there are GAAP differences in the financial statements of NTEEP and JIC, when compared with the financial statements of the Company. Furthermore, different subsidiaries of the Company may have a different peak season during a year.