LED Epitaxial wafer and chip maker Epistar expects its consolidated revenues for December to increase significantly on month mainly due to orders from China-based LCD TV vendors with urgent shipments to meet peak demand before the 2015 Lunar New Year in late February, according to company chairman Lee Biing-jye.
However, Epistar is likely to suffer operating losses for the fourth quarter due to low utilization rates, Lee said.
Epistar expects LED lighting demand, changes in LCD TV backlighting specifications and demand for LED display panels to drive growth in 2015 consolidated revenues, Lee indicated. Global demand for LED light bulbs will increase from 1.2-1.5 billion units in 2014 to 2.0-2.5 billion units in 2015, Lee said. For LCD TV backlighting, Samsung Electronics has taken the initiative to adopt flip chips in place of ordinary chips and Epistar has obtained orders with large shipments from Samsung, Lee noted. Epistar expects shipments of RGB chips used in LED display panels in 2015 to be 2.5 times those in 2014, Lee indicated.
Epistar is expected to see 2014 consolidated revenues of NT$27.0 billion (US$871 million), according to market watchers. Epistar will see 8-10% on-year growth in 2015 consolidated revenue, plus revenues from fellow maker Formosa Epitaxy which will be wholly-owned by Epistar at the end of 2014, Epistar will generate consolidated revenues of NT$33.0-34.0 billion for 2015, the market watchers said.
