LED chipmaker Epistar has reported May revenues of NT$2.223 billion (US$74 million), showing an on-month increase of 15.8% and an on-year increase of 19.42%. The figure was also a record high.
Epistar stated demand for AlGaInP LEDs has been returning slowly in the first half of 2013 and shipment increases were relatively significant in May. Capacity utilization rate in May reached 80%, said Epistar. Shipments of TV backlighting and high-voltage (HV) LEDs continue to be strong, pushing May revenues to reach a record high. The firm expects June performance to remain healthy.
According to Biing-Jye Lee, chairman of Epistar, if TV backlighting demand in China does not show growth in August-September, then shipments for China's long holiday in October will decline. Lee is conservative about third-quarter market conditions and expects performance to be flat or show slight growth. On the other hand, Epistar stated that starting in the third quarter, LED lighting demand will grow significantly.
Regarding rumors about upstream patterned sapphire substrate (PSS) makers planning to increase prices, Lee believes it will be quite difficult. However, any price increase depends on the supply of sapphire ingots because many ingot firms have exited the market due to low prices.
LED demand is likely to grow continuously in 2014, hence the firm plans to increase capacity by 25% in 2013, said Lee.
