29 December 2017
Epileds reports flat revenue in second-half 2017 as it completes factory relocation
LED epiwafer and chip maker Epileds Co Ltd of Tainan Science Park, Taiwan has reported flat revenue in second-half 2017 due to seasonal headwinds and the relocation of its factory, according to LEDinside (a division of TrendForce). Nevertheless, gross margin remains stable. Further, in 2018 Epileds is expected to achieve its best earnings per share (EPS) for the three-year period from 2015.
With relocation scheduled to complete by the end of 2017, the new factory will begin operation in 2018. Epileds is also reported to have started developing its micro-LED products.
In 2018, seasonal headwinds are expected to continue to affect Epiled’s performance up to the Chinese New Year holidays in February, after which the market for LED chips should pick up again. The new factory will start to ramp up capacity to meet the returning demand during first-half 2018. The additional equipment that Epiled has purchased for the new factory is mostly second-hand, so further depreciation is limited.
Also, Epileds expects to see noticeable growths in shipments in 2018 as it uses its expanded capacity to churn out new products. Annual shipments of aluminium indium gallium phosphide (AlInGaP) LEDs, for example, are forecasted to rise by at least 30% from 2017. Volume growth in UV-A products should again exceed 10%. UV-C products are still being sampled by prospective customers. Epiled’s UV-C strategy focuses on the consumer appliances segment. The goal is to differentiate from Japanese competitors that focus on UV-C components in medical equipment, says LEDinside.
In addition, Epileds has made a series of adjustments in its product mix over recent years. The share for blue LEDs, which was previously significant, has been scaled back to around 20% of the product mix. Conversely, the share for multi-color LEDs (used in various non-consumer applications) has increased. The scope for deployment of multi-color LEDs includes automotive lighting, ornamental lighting, stage lighting, horticultural growth lighting, and surveillance systems. The share for AlInGaP LEDs has surpassed 40%. Green LEDs and UV LEDs also make up 10-20% and about 20% of the product mix, respectively.
In response to emerging trends in the LED industry, Epileds is now investing in R&D on micro-LEDs and mini-LEDs. The firm has also expanded its range of chip-scale packages (CSP), customized in accordance with clients’ specifications.