When asked about his views for the LED industry in the next few years, B.J. Lee Epistar chairman said during an interview at LEDforum 2013 that he expects to see steady revenue growth for the company and the continual restructure of the LED industry.
Taiwanese LED chip manufacturer Epistar felt the effects of the rapid LED demand increase, which drove up the company’s operation performance. This lead to 2013 profit exceeding the year before, and profit for 2014 is expected to increase further.
Gross profit margin for 3Q13 is anticipated to be similar to 2Q and be maintained at 15.8 percent. Epistar subsidiary Huga Opto’s profit turnaround in June balanced out loses will have a positive impact on Epistar 3Q performance.
Epistar 2Q13 gross profit reached NT$ 964 million (US$158 million) and net profit was NT$346 million. The company saw loss turn to profit in a single quarter. Lee pointed out that 2Q and 3Q were both lucrative quarters for the LED industry. Although 4Q is traditionally a slack season, it is hoped that it will do better than 1Q. It is estimated that Epistar 4Q revenue will surpass NT$4 billion.
LED Chip Industry to Complete Restructure by 2016
After LED chip manufacturer San’an officially became a shareholder of LED chip manufacturer Forepi, market rumors began mushrooming about Chinese LED manufacturers Elec-Tech and Optech’s interest in cooperating with Taiwanese manufacturers. Lee says that the LED industry restructuring will continue. Not only will chip manufacturers continue restructure, but so will package manufacturers. He estimates that LED chip manufacturers restructuring will be completed by 2015-2016.
The LED chip industry will continue restructuring said Lee during an interview at the Cross-Strait Communications Industry and Technical Standards Forum on October 21st, 2013. Industries part of the restructure include Taiwan upstream large chip manufacturers Epistar, Forepi, and Genesis. Lee expects restructure to conclude before the end of 2016. Since 2012, Epistar has continued its virtual vertical integration business strategy.
LED industry development from 2005-2010 was mainly focused on upstream chip manufacturers, but by 2010-2015 will switch towards LED package and module, and light fixtures in 2015-2025, according to analysis by Lee. Over the past few years, Epistar has used investment in downstream module and lighting fixture manufacturers to start virtual integration. Lee revealed Epistar has a definite plan to invest or fund downstream module and light fixture from 2012-2014, which will be an extension of its virtual vertical integration business strategy.
