TPK Denies Hon Hai Interest

TPK Holding has dismissed rumours that Hon Hai Precision is investing in the business and also denied reports that there had been changes made to its management. Reports had suggested that Hon Hai was seeking to take a stake in the touch panel business and that it would appoint a number of executives to TPK’s executive management team. However, the company did acknowledge that it is undergoing a reorganisation.

The denial came as TPK released its results for the third quarter of the year, recording a net loss for the quarter of NT$421 million ($13.8 million) on turnover of NT$32.6 billion ($1.1 billion), compared with a net profit of NT$323 million ($10.6 million) in Q3 of last year, on turnover of NT$30.7 billion ($1 billion).

Reports from China and Taiwan suggest that the touch panel sector has been suffering on both sides of the Taiwan Strait, with more than 100 small and medium touch panel makers having gone out of business in China. In Taiwan, the major manufacturers, TPK, Wintek and Young Fast Optoelectronics, have been forced to close some facilities and reduce output amid challenging market conditions.