Production capacity to double by year-end
South Korean tech supplier RFTech is aiming to quadruple its 5G base stations antenna module capacity by next year as part of the so-called ‘Samsung Effect,’ according to the firm on Aug. 13.
"We are in the midst of purchasing land in Vietnam to add a new plant there for producing 5G base station antenna modules,” said an RFTech official. "In addition to expanding the assembly lines in Vietnam, we are planning to build a new plant to quadruple the antenna module capacity by four-fold.”
Currently, RFTech is churning out 80,000 such modules a year. When all assembly lines go full throttle, the company expects its annual sales to grow to 280 billion won from the current 70 billion won.
RFTech has been showing exponential growth after its key client Samsung Electronics began to actively expand their 5G network business.
RFTech is now planning to switch some of the antenna modules to ODM from OEM, a move indicating that RFTech will take credit for some of its module supplies that were being delivered under different brands.
Until now, suppliers KMW and Ace Technology had so far been splitting the orders from Samsung Electronics, but with RFTech increasing its capacity, the competition may intensify, according to market watchers.
RFTech has been developing 5G base stations antenna modules since 2017, and it reaped sales from them for the first time in the first quarter of this year. "Our revenues from 5G base stations antenna modules was only 2 billion win in the first sector, but the figures have been growing in the consecutive sectors,” said the RFTech official.
RFTech, along with Hansol Technics, is currently supplies combo antenna modules to Samsung’s budget smartphones, which have been showing improved sales. Amotech and Chemtronics, which was acquired by Samsung Electro-Mechanics, supplies such modules to Samsung’s flagship phones.
Established in 1995, RFTech is located in Yongin of Gyeonggi Province. It was listed on the Kosdaq index in 2002. The firm logged sales of 240 billion won last year, with an operating profit of 5.7 billion won. Its main income source was chargers and datalink cables, which account for around 90% of revenues. In addition to the 5G antenna modules, RFTech plans to expand into the HA filler market.
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