By Ho Chung Teng
Friday, 08 May 2015, 12:30 AM
Inari Amertron is not expected to see any significant impact on its short-term earnings as it is facing a capacity constraint
Inari Amertron Bhd expects an earnings boost after its radio frequency
(RF) chips supplied to Avago Technology Ltd were used by China-based
Xiaomi Inc for its smartphones.
New customer Xiaomi, the world’s third largest smartphone maker, is set
to benefit the Penang-based company as it is a major third-party
contract manufacturer for Singapore-based Avago Technology’s wireless
communication products such as RF chips, says a source.
A market observer tells FocusM that based on a smartphone teardown,
phone specialists have identified Avago Technology’s RF chips in
Xiaomi’s latest flagship product – the Mi4.
“Having its chips used in the up-and-coming smartphone manufacturer’s
products will see Inari Amertron gaining on Avago Technology’s RF chip
sales,” he adds.
In its latest annual report, Avago Technology says it uses third-party
contract makers like ASE Korea Inc and Inari Amertron for a major
portion of its assembly and test operations. Avago Technology also
supplies chips for Apple Inc’s highly-popular iPhone models.
Avago Technology and Inari Amertron declined to respond to FocusM’s queries to “protect their customer’s trade secret”.
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