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Epistar, FitTech expanding production capacities

LED epitaxial wafer and chip maker Epistar disclosed that it is expanding miniLED chip production capacity in China and will bring the capacity into operation in the second quarter of 2022. LED probing, testing, and sorting equipment maker FitTech said it is expanding production capacity in Taiwan by 30-40%, with the additional capacity to gradually come into operation in the first half of 2022.

Epistar had planned a 20% expansion of its miniLED chip production capacity in Taiwan; Epistar completed that expansion in the fourth quarter of 2021. In view of robust demand for miniLED backlighting, Epistar is setting up additional production lines in China for further expansion of miniLED chip production capacity.

At the end of 2021, Epistar had an annual miniLED chip production capacity of 1.2 million miniLED epitaxial wafers. Upon completion of additional production lines in China, that capacity will increase to 1.5 million wafers.

Epistar expects miniLED chips and high-end red-light LED chips to yield business growth in 2022. The revenue proportion for mini LED chips is expected to rise from about 30% in 2021 to nearly 40% in 2022; first-quarter 2022 consolidated revenues are expected to decrease sequentially but increase on year, Epistar indicated.

FitTech disclosed that its expansion of production capacity is reasonable because other China- and Taiwan-based LED makers have been expanding miniLED chip production capacities.

FitTech has provided outsourced LED and miniLED chip testing/sorting services in past years; it expects the revenue proportion for such services to remain at 20-30% in 2022. FitTech will begin production of probing and testing equipment for GaN and other compound semiconductors at the end of the second quarter of 2022.

FitTech has reported consolidated revenues of NT$596.0 million (US$21.4 million) for December, growing 8.43% on month and 69.57% on year; its consolidated revenues were NT$1.638 billion for the fourth quarter of 2021, increasing 8.27% on quarter and 86.47% on year; its consolidated revenues were NT$5.715 billion for 2021, hitting an annual record with growth of 81.07% on year.

FitTech is expected to have first-quarter 2022 consolidated revenues rising sequentially and on year due to strong demand for mini LED backlighting, market analysts noted.