Taiwan-based Shenmao Technology, which manufactures solder materials for IC assembly, has set up an office in Japan with the aim to cut into the supply chain of the country's first-tier electronics vendors such as Panasonic, Sharp and Sony, according to company chairman San Lian Lee.

Japan will be Shenmao's target market in 2012, said Lee, adding that the company will mainly market its high-end solder paste products.

Shenmao shipped 1,300 tons of solder paste in 2011, Lee revealed. Shipments for 2012 are expected to top 1,500 tons, thanks to orders from Japan, Lee said.

The new office is also responsible for procuring raw materials directly from original manufacturers, mostly located in Japan, Lee indicated. The move will help minimize procurement costs and lift company profits, Lee added.

In addition, Shenmao estimated that consolidated revenues would exceed NT$9 billion in 2011, up more than 20%. Sales and profits for 2011 both stand a chance of hitting the company's highest levels, it added.

Market watchers forecast Shenmao's net profits would be between NT$500 million and NT$600 million in 2011, up more than 40%. Profits will see another growth in 2012, according to the watchers.

Shenmao currently is Taiwan's largest supplier of solder materials, and number 3 in the world following Japan's Senju Metal Industry and Alpha Metals of the US.