2012: Achieving Focused Growth
2011 has been a challenging year for the semiconductor and electronics industry, affected by a global economy that has been weakened by the lingering high unemployment rate in the US and sovereign debt issues in Europe, which followed hard on the heels of the earthquake in Japan. The market outlook for 2012 is likely to remain volatile given the uncertain macroeconomic environment. The semiconductor and electronics industry, which constitutes a significant portion of the world’s GDP, will not be immune to the cautious economic climate.
Nevertheless, there are still some segments that will see growing demand and strong potential, in particular smartphones, tablets, smart TVs, smart projectors and a few other industrial products. To capture such opportunities and strive for growth, we have developed strategies to further enhance our competitive edge in these particular business areas.
For smartphones and tablets, demand will largely be driven by capacitive touch technology, high-resolution drivers and high-speed interface solutions. At Solomon Systech, we have been strengthening our Capacitive Touch Panel Controller family, and have received very good market response; consequently, demand is expected to continue surging in 2012 and beyond. Also, with more innovative solutions added to our Display Interface Controller family for driving ultra high resolution display, we have managed to win large volume projects for the upcoming two years.
Our investment in C2 Microsystems (“C2”) in August 2011 is a strategic step towards building our foothold in the smart TV business. In fact, we are working on a pilot run project for a famous China TV manufacturer. The synergies generated from the strategic investment also present other business opportunities for Solomon Systech. The Group’s Display System Solution business unit plans to incorporate C2’s leading-edge technology into smart projectors. We believe that the combination of our established customer base in the projectors segment and C2’s technology will enable us to capitalize on this growing market.
Electronic shelf labels using e-paper display technology are also expecting to experience a boom in 2012. We have secured a few world-leading suppliers who are all forecasting steady growth for such product in the coming years.
Aside from directing more resources toward these high-growth businesses, we have also allocated resources to further strengthen our technical competence, which is critical for setting us apart from competition; as well as to enhance our sales and marketing team in order that we secure target customers and create strong relationship with them to facilitate business growth.
With our strategies well in place and our foundation reinforced, combined with the commitment and effort of all Solomon Systechers, we are well prepared to set for focused growth and profitability in 2012.
Dr Humphrey Leung
Group CEO
Solomon Systech Limited