Epistar and GPI 2Q15 Revenue Estimated to Increase 15%

News Source: 
China Times

LED manufacturers have announced their revenues for April lately, with Taiwanese LED chip and package manufacturers Epistar and Genesis Photonics Inc. (GPI) performance outshone other competitors, reported China Times.

Epistar and GPI revenues in April 2015 set a new historical high for the last seven to eight months, revenues have significantly rebounded following an increase of 9.19% to 16.38%. Other package manufacturers growth remained incremental, due to weaker than expected demands in the TV backlight market. However, lighting shipment orders surpassed TV backlight orders, leading to LED manufacturers’ gradual growth in 2Q15.

Last month, lighting client orders were better than TV backlight, and the overall order situation is fairly positive in May. However, revenues will still depend on the production situation. In general, the two companies 2Q15 business operations will continue to grow.

Epistar’s 2Q15 revenue soared 30% to NT $8.13 billion (US $260 million), setting a new historical record. The peak season effect will also affect 2Q15 performance, clients this year will not be affected by supply shortage issues, and the resulting frenetic pace of order placements last year. Overbooking effects reverberated throughout the second half of 2014, as a result manufacturers have been more meticulous in their stock up in 2015. Stockup in 2Q15 is expected to grow gradually.

GPI has benefited from returning flip chip orders in April, which reached NT $311 million or a monthly increase of 16.38%, setting a new record high since August 2014. Korean TV brands adoption of flip chip packages in TV backlight applications has led to growing penetration rates of mid-power to high-power flip chips. Following evident flip chip order returns in 2Q15, utilization rates have risen to above 80% this quarter.

Financial institutes estimate, chip manufacturers revenues will reach double digit growth between 10% to 15% in 2Q15. 

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