The miniLED backlighting business is expected to increase Ennostar's monthly consolidated revenues by 20-25%, according to company chairman and CEO Biing-jye Lee at a March 18 investor conference.

Ennostar, the parent company of Epistar and Lextar, has modified 95% of Epistar's production capacity for blue-light LED chips in Taiwan specifically for production of miniLED chips to cater to rising demand for miniLED backlight modules and will also expand miniLED capacity at its plants in China.

Epistar will also gradually upgrade its miniLED chip equipment in Taiwan to produce microLED chips with annual capacity to reach more than 400,000 6-inch epitaxial microLED wafers, Lee indicated. In the long term, Ennostar is looking to have production lines in Taiwan focusing on microLED products with those in China targeting miniLED ones.

Many notebook vendors are in design-in process of using miniLED backlighting, and LCD TV vendors are expected to follow suit, Lee noted.

Epistar recorded capital spending of NT$6.0 billion (US$211 million) in 2020, mostly on miniLED chip production capacity, and Ennostar has budgeted capex of NT$6.5-7.5 billion for 2021, including Epistar' continued investment in miniLED chip equipment.

For Epistar, LED chips used in automotive lighting and horticultural lighting as well as infrared LED chips used in sensors are the main sources of revenue growth in 2021.

Epistar posted consolidated revenues of NT$14.532 billion, gross margin of -3.06%, operating loss of NT$4.486 billion and net loss of NT$8.109 billion for 2020.

By DIGITIMES