China-based Elec-Tech's LED revenues have been increasig, with the business segement's contribution reaching around 32% of total revenues in first-half 2012. A further breakdown shows that LED applications, packaging, and chips accounted for 24.9%, 4.6%, and 2.2% of total revenues, respectively. As more MOCVD equipment is coming online, Digitimes Research expects the company's LED chip revenues to exceed those from LED packaging.
Compared to the development of LED applications, Elec-Tech's development of its LED chip business has been slower than scheduled. In first-half 2012, around 20 units of MOCVD equipment began production. With government funds, the firm plans to have a total of 60 units of MOCVD equipment operating in 2012.
Elec-Tech began business by providing kitchen and home appliances, hence the firm has strong distribution channels and brand. This allows the firm's LED applications to have an edge over other brands. In 2012, the firm has been obtaining orders around CNY1 billion (US$158 million) from both domestic and international firms.
