FOREPI, Unity Opto Estimated to Achieve Record Sales in Q4

Taipei, Oct. 3, 2012 (CENS)--Thanks to vigorous orders from mainland Chinese TV makers, Taiwan's LED makers Formosa Epitaxy Inc. (FOREPI) and Unity Opto Technology Co., Ltd. are estimated to achieve better-than-expected sales in the fourth quarter as the unprecedented case of the industry.

Normally, sales scored by Taiwan's LED makers fall around 20% in the fourth quarter after peaking in the busy third quarter. But surging orders for LED backlights from the mainland have interrupted the normality. Industry executives associated the spike with the escalating anti-Japanese sentiment in mainland China after Japan nationalized the disputed Diaoyutai islands, which is prompting the mainland's TV makers to place all of their backlight orders with Taiwan's suppliers.

Alpha Wu, chairman of Unity Opto, said that although the mainland's TV makers usually begin to place the orders in the fourth quarter to build up inventories for the Chinese New Year shopping season, the orders are unusually strong this year. He estimated the company's sales for the fourth quarter to increase 5-10% from the third quarter.

Unity Opto is Taiwan's No.1 supplier of LED backlights. Robust orders have brought in the company revenue over NT$1 billion (US$33 million at US$1: NT$30) this month alone and are projected to maintain the company's sales for next month at high level.

Providing Unity Opto with 60% of chips for the backlights, FOREPI also benefits from the unusual surge in orders. Company chairman, F.R. Jien, pointed out that he is much surprised by the strong orders that he estimates will continue into November. The company has become the only Taiwanese LED epi-wafer maker to expand capacity in the fourth quarter.

Jien estimated the company's sales for the fourth quarter would be higher than it had in the third quarter.

In August, Unity Opto and I-Chiun Precision Co., Ltd. saw their revenues hit new highs while Lextar Electronics Corp.'s revenue reached a 24-month high. In the meantime, FOREPI's August revenue hit a 23-month high, while Epistar Inc. saw its revenue reach the year's second highest lelvel. All of them are in LED backlight supply chain.