Everlight Electronics has disclosed it will expand its annual LED packaging capacity from 4.5 billion chips currently to 5.5 billion, with most of the additional capacity to be used for fine pixel pitch displays and automotive lighting.
Everlight has gradually decreased production for LED lighting and backlighting due to the product lines' low gross margins since 2016. The revenue proportion for LED lighting and backlighting in 2016 fell to below 50% for the first time and is expected to drop further in 2017.
Everlight started production at a new factory in central Taiwan in fourth-quarter 2016. The factory has annual capacity of packaging 200 million LED chips currently and focuses on automotive lighting applications.
Everlight expects 36% of 2017 consolidated revenues to come from fine pixel pitch displays, automotive lighting, smartphone camera flashes; 19-20% from ultraviolet and infrared devices; 20% from lighting; and 20% from backlighting.
Everlight is expected to see consolidated revenues for first-quarter 2017 decrease on quarter by less than 5%, according to market analysts.
