Frank Chien, chairman of Taiwan-based LED chipmaker Formosa Epitaxy predicts the firm will return to profitability in the third quarter, and quarterly revenues will show sequential growth of 20-30%.
Formosa Epitaxy developed package free chips (PFC) which can increase brightness efficiency of LED chips to 230lm/W. The product was introduced in September 2012. The firm is currently displaying three new PFC products at 2013 LED Lighting Taiwan including 3.5W, 350 lumens candle lamps, 10W, 2,000 lumens LED light bulbs, and LED automobile front lighting. In particular, the 3.5W LED candle lamps can replace 40W tungsten filament candle lamps with a color temperature of 2,700K and color rendering index (CRI) above 80. The LED components of the product have brightness efficiency of 150lm/W and beam angle of 330 degrees, according to the firm.
Chien stated that new products have been in verification by customers and shipments are expected to begin in the second half of 2013.
The firm has seen net losses for eight consecutive quarters. Chien noted that the current problem in the industry is not a lack of orders, but prices are too low. However, new products and technologies tend to have healthier gross margins, said Chien.
Formosa Epitaxy saw first-quarter consolidated revenues reach NT$930 million (US$30 million). Chien believes second-quarter revenues are likely to show on-quarter growth of 40%. Although the LED industry is divided on market conditions in the third quarter, Formosa Epitaxy expects all MOCVD equipment sets at its plant in Taoyuan, Taiwan, to begin production in the third quarter. Hence, the firm expects third-quarter revenues to show a sequential increase of 20-30%.
