Tariff War Leads to Tepid Orders for Macroblock

LED IC driver manufacturer Macroblock registered a revenue of NT$ 245 million (US$ 7.99 million) for July, down by 9.97% MoM, which was not in line with the expectation of the peak quarter. Macroblock indicated that the trade war between the U.S. and China has impacts on the company’s orders.


(Image:Macroblock)

According to Macroblock, about 80% of its clients are based in China and have been affected by the tariff, so they changed the focus to make-to-order production. The strategy has therefore slowed down the growth of Macroblock. However, the company will continue progressing its development of high-margin products such as 48-Channel LED driver IC and Mini LED products. Its Mini LED backlight samples have been delivered to its clients and might complete the verification stage by Q4. The shipment is then expected for 1Q19.

As for Micro LED, Macroblock said the company will be prepared to work closely with other producers of the supply chain. A clearer market outlook for Micro LED products will be materialized in the second half of 2019, as claimed by Macroblock.

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