Taiwan-based LED epitaxial wafer and chip maker Epistar expects a small decrease in orders for LED chips used in backlight of LCD TVs but strong demand for use in backlight of small- to medium-size panels and LED lighting in July-August, with utilization of production capacity to exceed 90%, according to the company.
Epistar's subsidiary fellow maker Huga Optotech, the main source of non-operating losses for Epistar, is improving in operation and expected to swing from the red into profitability in the third quarter of 2013, Epistar noted.
Epistar's subsidiary maker in northern China saw operation begin to profit in the first quarter of 2013, while Epistar's joint venture maker of LED chips used in LED lighting with Taiwan-based Lite-On Technology in eastern China is expected to begin to profit in the third quarter. In addition, Epistar's joint venture maker with China-based China Electronics will start shipments of LED backlight units to China-based LCD TV maker TPV Technology in the third quarter.
Epistar shifted a proportion of LED chip production capacity from use in backlight to lighting use in June to increase the proportion of output for application to LED lighting in the third quarter.
Epistar generated consolidated revenues of nearly NT$6.0 billion (US$200 million) for the second quarter of 2013, local market analysts estimate. As shipments of more profitable LED chips used in LED lighting will increase as well as China-based subsidiaries and joint venture makers have begun or will begin to profit, Epistar will see net earnings per share rise from NT$0.3 for the second quarter to NT$0.6 for the third one, the analysts pointed out.
