Demand in the second quarter of this year was lower than expected due to high inventory levels. Since the production capacity of AlGaInP LED chips has been fully utilized, the corresponding revenue ratio has also increased from 25% in 2017 to the current 30-40%. In 2018, Epistar plans to further expand its production capacity by 10-20%. It is reported that LED epitaxial wafer and chip maker Jingyuan Optoelectronics said that the demand for LED chips for lighting and backlighting is expected to rebound in the third quarter of 2018, as related customers will replenish stocks in large quantities to cope with the peak demand in the fourth quarter. Demand in the second quarter of this year was lower than expected due to high inventory levels. Since the production capacity of AlGaInP LED chips has been fully utilized, the corresponding revenue ratio has also increased from 25% in 2017 to the current 30-40%. In 2018, Epistar plans to further expand its production capacity by 10-20%. Automotive displays, general lighting and horticultural lighting, and infrared LED chips have strong demand for LED chips. It is expected that LED chip shipments for horticultural lighting will increase by about 50% year-on-year in 2018. For the whole year of 2018, Epistar is expected to deliver a total of 562.98 billion LED chips. In addition to LED chips, Epistar has begun to produce VCSEL (Vertical Cavity Surface Emitting Laser) epitaxial wafers, mainly for the manufacture of optical data transmission components. In addition, Epistar will increase the production capacity of 6-inch VCSEL epitaxial wafers in the third quarter of this year for the manufacture of 3D sensors and sensing components, with initial capacity of 1,500 wafers per month, followed by small batches in the fourth quarter. produce. Although Epistar is preparing to begin production of Mini LED chips for backlighting of smartphones and gaming LCDs, potential customers are hoping to reduce the number of chips and lower overall production costs, thus delaying the use of new products with Mini LED backlighting. Development. The current yield of Mini LED chips is not satisfactory, so Epistar plans to work with potential customers and local and US and South Korean equipment manufacturers to solve this problem. It is expected that a solution will be proposed in the second half of 2018, and it is possible Certified in 2019. Therefore, it is expected that the application of Mini LED will soar from the second half of 2018 to 2019.
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