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Epistar Projects Bright Operation Outlook for 2012

2012/01/19 | By Ken Liu

Taipei, Jan. 19, 2012 (CENS)--Chairman B.J. Lee of LED chipmaker Epistar Inc. estimated the company's revenue will rally this year to hit the NT$20 billion (US$666 million at US$1:NT$30) mark it achieved in 2010 thanks to anticipated shipment growth of chips for lighting and backlight uses.

Global economic slowdown dragged down the company's 2011 revenue by 10.39% year on year to NT$17.7 billion (US$590 million).

Lee, whose company is the world's No.1 blue LED chip maker by volume, made the statement yesterday in a solid-state lighting trade show in Tokyo.

He estimated the company would ship three times more lighting chips worldwide this year than last year and see revenue from sales of backlight chips rise at annual rate of 20% this year. The two categories of chips are projected to contribute as high as 80% of the company's 2012 revenue.

Lee projected market penetration of liquid-crystal display (LCD) TVs lit by LED backlights would reach an overwhelming 80% at the end of 2012, up from 2011's 40%.

Lee noted that Samsung's push into LED-lighting market with aggressive pricing strategy is threatening established players such as Cree, Philips and Osram. Intensifying competition, he estimated, will likely pull down the price point of an 800-lumen LED bulb to general public level. Next year, prohibition on 40W incandescent blubs in Europe and on 60W bulbs in America, he said, would further fuel demands for LED substitutes.

Other prominent Taiwanese participan6 in the trade show include Chairman Y.F. Yeh of Everlight Electronics Co., Ltd., Chairman J.F. Su of Lextar Electronics Corp., as well as executives from Taiwan Semiconductor Manufacturing Co. (TSMC), Delta Electronics Inc. and Industrial Technology Research Institute (ITRI).

The trade show is organized by Reed Exhibitions Japan Ltd. The organizer pointed out that a record 339 companies participate in the show, 42 more than in the 2011 show. Over 4,000 visitors have signed up to attend this event, which will run from Jan. 18 through 20.

Epistar Chairman B.J. Lee's Recent Comments on LED Markets


LED blub shipment

Around 150 million units worldwide in 2011 and approximately three times more in 2012.

Reason behind recent LED bulb growth

Samsung's push into the market with aggressive pricing strategy

LED-lit TV market penetration

Rise to 70-80% by the end of 2012 from 2011's 40%

Epistar's gain

Shipping three times more lighting chips to double revenue this year. A 20% revenue increase from backlight chip sales.

2012 revenue goal

Rally to hit NT$20bn landmark

Source: Epistar