Chi Mei (CMO) Buys Contrel Equipment

CMO bought Contrel Semiconductor Technology’s LCD inspection equipment for its G5 LCD fab, helping Contrel’s sales rise 72% year over year to US$12 million. Contrel begain G5 equipment delivery to CMO in May 2006. CMO’s purchase accounted for 77% of Contrel’s sales in 2005 and is Contrel’s largest customer. Quanta Display (QDI) accounted for 13% of 2005 sales, Innolux Display 7% and HannStar Display 3%.

It would be best if Contrel can make use of this momentum to diversify its customer base. Having a large customer is fine, but if that customer composes 77% of annual sales and decides to go to a competitor, that would pose a real challenge.

Source: DiCon

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