Despite many uncertainties in the LED industry in second-half 2012, South Korea-based LED firm Seoul Semiconductor and upstream LED chip subsidiary Seoul Optodevice Company (SOC) have been optimistic about third-quarter 2012 performances. The firms predict quarterly growth of 4.7-14.2% for Seoul Semiconductor and 2.8-7.4% for SOC. Revenues for the firms are predicted to reach KRW220-240 billion (US$193-211 million) for Seoul Semiconductor with operating profit margin at 4-6% and KRW67-70 billion for SOC with operating profit margin at 7-11%.
In first-half 2012, lighting products accounted for 30-40% of total revenues while LED TV accounted for 25-37% for Seoul Semiconductor. For SOC, lighting applications accounted for 30-40% while the rest were display backlight units (BLUs).
Seoul Semiconductor has been focusing on lighting and LED TV BLUs in 2012. For lighting, the firm has been promoting Acrich2 with sales expected to account for 10% in 2012. For second-half 2012, the firm began commercial production of nPola, a new product that adopts GaN substrates.
Seoul Semiconductor has been promoting direct-lit LED TV backlight components. In first-half 2012, this product accounted for 40% of total LED TV revenues. Customers include major display firms from South Korea, China, Japan and Taiwan. The firm predicts on-quarter growth of revenues from LED TV applications in the third quarter will reach double digits.
Seoul Semiconductor has been procuring chips from various sources such as SOC, Cree and Toyoda Gosei. The firm plans to increase the percentage of procurement from SOC in second-half 2012 for LED lighting and direct-lit TV applications. This is likely to help increase SOC's capacity utilization rates in the second half of the year from 65% in mid-2012.
