Largan makes fourth land purchase this year

Smartphone camera lens supplier Largan Precision Co (大立光) has made its fourth land purchase this year, announcing on Tuesday that it has bought land and a building in Taichung for NT$3.08 billion (US$96.8 million) to expand production.

While Largan did not disclose any further details on the purpose of the acquisition, analysts said it was likely aimed at supporting efforts to develop copackaged optics (CPO)-related products, such as fiber array units, a business the company recently added to its product portfolio.

The new plot covers about 20,800m2, and the building has a floor area of 23,319m2, the company’s filing with the Taiwan Stock Exchange said.

Largan Precision Co chairman Adam Lin poses for a photograph at the company’s annual shareholders’ meeting in Taichung on June 9.

Photo: CNA

Largan, a supplier to Apple Inc, said the seller of the property was Ke Hung Industrial Co (科宏工業).

The linking of the purchase to the CPO product line came after Largan chairman Adam Lin (林恩平) told reporters that the company had secured its first fiber array unit orders, with trial production expected at the end of the third quarter.

Lin said at the time that Largan’s fiber array units are expected to begin generating revenue in the middle of next year at the earliest.

Largan shares attracted strong interest after the market opened yesterday on news of the property deal. The stock soared 10 percent, the maximum daily increase, to close at a new high of NT$6,290, outperforming the TAIEX, which rose 1.47 percent to 45,832.62 points.

Buying in Largan also spread to other CPO-related stocks, with EZconn Corp (光紅建聖) rising 0.31 percent to NT$1,610.