LED epitaxial wafer and chip maker Epistar has received orders with shipments scheduled through the end of the first quarter of 2015 and consequently is expected to see consolidated revenues for the quarter grow sequentially by 20-25% and corresponding gross margins to rise to 20%, according to industry sources.
In view of significantly decreased orders for blue-light LED chips, Epistar originally held a pessimistic outlook on its business operations in the fourth quarter of 2014 and expected overall capacity utilization to drop to below 40% at the end of the quarter, the sources said. However, Epistar obtained urgent orders for LED chips mainly for use in LED lighting later in the fourth quarter and as a result the company netted NT$0.20 per share for the quarter.
Epistar believes LED chip prices have approached a bottom level and there is little room for further drops, the sources noted. In case of urgent demand, Epistar is likely to hike quotes for high-end LCD chips, the sources said.
Due to rebounding demand, Epistar's overall capacity utilization is expected to rise to over 70% in March 2015, the sources indicated.
