LED chip maker Genesis Photonics expects to obtain certification from Japan-based smartphone vendors for flip chip (FC) LED chips used to make smartphone flashes in the fourth quarter of 2013 and begin shipments in the first quarter of 2014, according to industry sources.
While leading smartphone vendors generally source LED chips to make camera flashes from major LED chip makers such as Philips Lumileds Lighting, Genesis will become the first Taiwan-based supplier, the sources noted. Shipments of LED chips are estimated to account for 5% of Genesis' monthly consolidated revenues initially, the sources indicated.
FC LED chips have an average gross margin of 20%, but those used to make smartphone are higher, the sources noted.
Genesis' LED chips used in lighting accounting for about 50% of its consolidated revenues, the sources said. Genesis has become a supplier of LED chips for the three largest Japan-based LED lighting vendors, with revenues from Japan taking up 40% of total revenues from LED lighting, the sources indicated.
For LED backlights, Genesis is a supplier for first-tier China-based smartphone vendors including ZTE, Huawei Device, Lenovo and Coolpad, sharing 50-60% of the total supply of LED backlight chips for all first-tier vendors, the sources said. In the China market, smartphones will be developed toward larger sizes and higher resolutions in 2014, requiring LED backlight chips with higher luminous efficiency and smaller sizes, the sources noted.
Genesis is expected to see monthly revenues from FC LED chips increase from NT$10 million (US$336,000) currently to more than NT$30 million in the fourth quarter of 2013, the sources indicated. The company is expected to see consolidated revenues for 2014 grow on year by 20-30%.
