FQ Shareholders Approve Dividends; Chairman Eyes Strong Second Half Driven by AI and Satellite Materials

Taiwanese fiberglass fabric manufacturer FQ (1815) announced its decision to distribute a cash dividend of NT$0.5 per share and a stock dividend of NT$0.5 per share during its shareholder meeting. The company highlighted strong demand for its E-grade fiberglass fabric, particularly for applications in low-orbit satellites, which has resulted in increased shipments and favorable price adjustments.

FQ is strategically focusing on upgrading its product portfolio and expanding production capacity for next-generation AI servers and high-speed switches. The company anticipates a continued rise in the proportion of its high-frequency, high-speed, low-loss (Low DK2) materials in its shipments. These high-value products are expected to optimize the company's product mix and boost overall revenue and profitability.

The company is also developing M9-grade quartz cloth materials, which have been successfully researched and will undergo certification based on future customer demand. Additionally, FQ is experiencing strong customer demand for its Low CTE products used in carrier boards, and is optimizing its production learning curve to increase market penetration.

FQ's Dongguan plant has already turned profitable in the first quarter due to optimized product mix and rising prices for China's E-grade fiberglass fabric. The plant will introduce Low DK fabric in the second half of the year to enhance competitiveness. Furthermore, FQ has initiated investment in a new plant in Thailand, slated to commence shipments in the latter half of 2025. This facility will primarily serve the low-orbit satellite and AI server markets, establishing a crucial overseas production base for high-end products.

FQ expressed cautious optimism for its business outlook in the second half of the year, citing its competitive advantages in high-end fiberglass materials, increased output of Low DK1 and Low DK2 products, improved penetration of Low CTE, and growth in shipments and prices for low-orbit satellite E-grade fiberglass fabric. The company also noted the improved operational health of its subsidiaries.