Increased AlInGaP LED and UV LED Shipment Boosts Epileds Revenue

Taiwan-based LED epi-wafer and chip manufacturer Epileds finished moving factories at the end of 2017. The installation of its newly purchased production equipment has begun. Because most of the equipment is used, the depreciation is limited. In 1H18, newly added capacity from these machines is predicted to be gradually used for mass production. 

(Image: LEDinside)

Epileds adjusted product portfolio of its shipment. It mainly reduced the portion of blue light LED and increased products for niche segments (AlInGaP LED and UV LED). As new products are massively manufactured, AlInGaP LED shipment might grow above 50% and UVA product shipment might also keep increasing in 2018. The new capacity will create a noticeable revenue raise this year.

After the modification, Epileds' sales rebounded in 2017. AlInGaP LED production rose from about 30% in 2016 to nearly 50% recently. Blue light LED's shipment dropped to around 20%. UV LED's portion took roughly 10% - 20%. The rest was the shipment of green light LED.

Epileds revealed the major reasons of profits bounce in 2017. The range of applications using AlInGaP LED is wide, including automotive LED lighting, decorative lighting, stage lighting, horticultural lighting, and surveillance equipment. Therefore, the revenue contributed by AlInGaP LED increased while that by blue light LED dropped.

The quantity of AlInGaP LED shipped surpassed Epileds' target.

The facility in the Tainan Industrial Park was rented, while the land in the Tree Valley Park is owned by Epileds, so the company moved factories from the Tainan Science-based Industrial Park to the Tree Valley Park in 2017 so as to cut down rental expenses.

Epileds stressed that its land in the Tree Valley Park is huge. If it is fully used, the new capacity is estimated to become 7-8 times larger than the capacity of the plant in the Tainan Industrial Park. Epileds will also consider introducing more equipment to the new plant for growing orders in the future.

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