Trade Resources Industry Views LED Makers Saw Increasing Capacity Utilization

LED Makers Saw Increasing Capacity Utilization

Demand of LED has resumed in the second quarter. Leading Taiwanese LED chip maker Epistar reached full production capacity in AlGaInP LEDs. Meanwhile, Unity Opto is expected to see two-digit growth in the second quarter as its order visibility rose to two months.

Demand in the second quarter is quite good and might be the best over the past few quarters, said Epistar spokesman Rider Chang. The company has received increasing AlGaInP LEDs orders and that its production capacity is inadequate for current demand. Meanwhile, the demand of InGaN LEDs also looked promising with capacity utilization rose 10% to 80%. The overall orders volume, prices and quality of April are generally better than that of March.

On the other hand, Unity Opto’s sales continued to grow with the facilitation of intelligent lighting. The current order visibility is approximately two months while the quarterly revenue is expected to see two-digit increase, said Chairman Wu Ching-huei.

The first quarter is traditionally low season of LED industry while less work days also influenced the revenue. Therefore, the company’s revenue saw only slight growth, said Wu Ching-huei. However, the company has adjusted its product strategies by reducing the percentage of low margin products. The company will naturally see profit growth in the second quarter. In 2015, most Taiwanese manufacturers suffered from loss in profit while only a few like Everlight, Unity Opto and Lextar escaped the condition. Therefore, it’ difficult to remain confident to the LED industry. The priority in 2016 is to secure profit growth.

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Demand of LEDs Resumed, Taiwanese Manufacturers Saw Increasing Capacity Utilization in Q2
Topics: Lighting