Silitech to benefit from Nokia shift to more component supplies from non-Japanese firms, says paper

Taiwan-based handset keypad maker Silitech Technology is expected to benefit from Nokia's plan to increase the supply of components from non-Japanese companies due to the fast appreciation of the Japanese yen, the Chinese-language Commercial Times quoted JP Morgan as indicating.

If the plan is realized, the ratio of Nokia's contribution to Silitech's total revenues is expected to rise from 16% in 2008 to 24% in 2009 before climbing to 31% in 2010, the paper quoted a research report from JP Morgan as saying. The investment bank also upgraded the ranking of Silitech shares to overweighted.