Interflex, a manufacturer of flexible printed circuit boards (FPCBs), has secured Sunny Optical and BOE as new customers. It will supply RFPCB for camera modules for Sunny Optical and organic light emitting diode (OLED) displays for BOE.
According to the industry on the 27th, Interflex has secured Sunny Optical and BOE as new clients. Sunny Optical is a supplier of camera modules to Chinese smartphone makers Huawei, Oppo, and Vivo. Since last year, Sunny Optical has been supplying camera modules for Samsung Electronics' smartphones. It has been reported that Interflex is supplying RFPCB for high-end products among the camera modules manufactured by Sunny Optical. The company's current sales total is small. Yet, the official explanation is that the sales will start in earnest from the second half of this year. The RFPCB orders for camera modules are expected to exceed 50 billion won.
Interflex is planning to diversify its revenue streams, which had been biased toward products for smartphone displays, by supplying camera module products. At one point, about five years ago, Interflex produced and supplied camera module products to Samsung. With the recent stagnation of the entire smartphone market, it has been reported that the company has once again begun producing RFPCB for camera modules as the multi-camera is expanding to low-end products. The fact that the company's relationship with Apple, a major customer, was effectively cut off also played a role.
BOE has also recently become a new client of Interflex. BOE supplies RFPCB for OLED display. The combined orders of Sunny Optical and BOE would amount to 100 billion won.
Earlier, Interflex achieved sales of 805.5 billion won in 2017 and succeeded in converting into the black (operating profit of 61.5 billion won). It was the result of supplying RFPCB for OLED display and RFPCB for touch screen panels (TSP) to Apple iPhone X. However, from the end of the same year, the iPhone X screen shut-down issue began to occur, and iPhone X sales slowed, which caused difficulties for Interflex. Apple believes TSP was the cause of the issue, and in 2018 it reapplied the old multi-PCB to the new iPhone TSP. Interflex's Apple sales also dropped sharply. Apple accounted for 73.4 percent of the company's revenue in the third quarter of 2017, but dropped to 14.1 percent in the third quarter of last year. This figure was 0.01% in the fourth quarter of last year. Samsung accounted for 96.5% of total sales, increasing again.
Headquartered in Ansan, Gyeonggi Province, Interflex is part of Youngpoong Group that has Korea Circuit, Signetics, and Youngpoong Electronics. Interflex recorded sales of 314 billion won and operating loss of 66 billion won last year. Sales fell 61% YoY and operating profit turned negative. Interflex's goal for this year is to be profitable and the sales of 400 billion won, which is a figure that includes the 100 billion won worth of sales to Chinese customers this year.