Taiwan's LED Chip Makers Report Strong Sales in March

In March, Taiwan's LED chipmakers reported strong sales due chiefly to brisk demand from the lighting industry, with some even hitting new highs.

Formosa Epitaxy Inc. (FOREPI) had revenue of NT$386 million (US$12.8 million) in that month, surging 42.73% from a month earlier to hit a fresh high since August last year albeit decreasing 3.67% year on year. The March result helped send the company's revenue for Q1, 2014 rising 9.81% from the previous quarter to NT$940 million (US$31.3 million).

FOREPI executives say that the company's capacity utilization for the first quarter of this year had been unstable in the first two months, during which the company had been adjusting product lines and production lines. The utilization has begun rising in March thanks to more workdays than in February and initial completion of the adjustments.

They project the company's capacity utilization ratio for the second quarter to exceed 95% thanks to the normally high season for LED backlights in the second quarter in addition to strong lighting market.

Industry executives predict the company's revenue for the second quarter to likely spike 50% from the last quarter due to the low base of the company's first-quarter operation and completed product-line and capacity-utilization adjustments.

Genesis Photonics Inc.'s revenue for this March was NT$378 million (US$12.6 million), rising 13.42% from February and 33.56% year on year to hit five-month high. In the first quarter, the company generated total revenue of NT$1.08 billion (US$36.3 million).

Genesis executives report that the company's production was running close to full capacity in March for the first time in two years with a ratio of over 90% thanks to streaming orders and addition of new machines to its production lines.

Industry executives predict the island's chipmakers to see strong sales throughout the second quarter due to normally a high season for LED backlights coupled with LED lighting market gaining momentum. (KL)

March 2014 Revenues at Taiwan's LED Chipmakers

Company	Epistar	FOREPI	Genesis	Optotech	Epileds
Revenue	NT$2.3bn	NT$386M	NT$378M	NT$575M	NT$132M
MoM Change (%)	19.54	42.73	13.42	26.79	14.32

Source: the companies.