E Ink Holdings say that demand for e-readers and electronic shelf labels improved in the last quarter, and the company expects a small growth in revenues. EIH says that Coronavirus outbreak is having only a minor impact on its operations.
In fact, EIH already said earlier this month that remote work and school projects are increasing demand for e-notebooks, and now the company says that the outbreak also increases demand for e-readers, ESLs and medical devices, especially in China. The company does see a slowdown in actual installations of ESLs projects in Europe and US where cities are in lockdown.
EIH also says that some of these orders are advanced orders as customers have fear of supply chain constraints. This could be bad news further down the road, but the company is planning to spend NT$1.2 billion (around $40 million USD) to expand its production capacity at its New Taipei Cityâs fab and its Hsinchu fab.