Affected by the traditionally low season in 4Q, Taiwan LED chip manufacturer FOREPI utilization rates were down to 60 percent. However, there is a possibility for large-sized backlight demands to rebound earlier than expected, as Korean manufacturers have decided the new TV models for 2014. FOREPI projects utilization rates might return to higher levels in 1Q14.
The impact on FOREPI has been much more evident during the low backlight season in 4Q13, since backlight products account for more than half of the company’s revenue. The company’s utilization rate in 4Q13 has decreased to about 60%, and consolidated revenue for October and November have also decreased to NT$ 465 million (US$ 15.67 million) and NT$ 249 million respectively. Judging from the current market condition, market demands in December will continue to be weak, and the company will not have significant revenue growth.
However, FOREPI pointed out compared to the pessimistic market outlook in November, the outlook for December was positive with potential turnaround as Korean TV manufacturers have completed decision for 2014 TV models. FOREPI noted based on order forecasts made by TV clients in 1Q14, if shipment goes smoothly there is a chance for utilization rates to return to 80 percent level. Revenue performance for 1Q14 will surpass 4Q13.
