EMS provider Lite-On Technology expects power supplies used in cloud computing, invisible-light LED devices and devices used in EV (electric vehicle) power charging piles to be the three sources of business growth in the second half of 2022, according to company president Anson Chiu.
Demand for power supplies used in cloud computing has become robust along with continued investment in setting up data centers in North America, Chiu said.
Being the globally largest supplier of infrared LED-based photo couplers, Lite-On has become the world's first maker to pass AEC-Q 102 certification for photo couplers used in management for EV batteries and power supply, Chiu noted.
For devices used in EV power charging piles, shipments in 2022 are expected to soar 300% on year and the corresponding ASP will rise sharply, Chiu indicated.
Lite-On has provided LED automotive lighting modules, head-up displays, compact camera modules used in ADAS (advanced driver assistance system) for supply chain makers for first-tier automakers, Chiu said.
For 5G, Lite-On has joined the O-RAN Alliance and began to provide 5G cell products and solutions specifically used in enterprise-use private networks for telecom carriers in 2021, Chiu noted. Lite-On will cooperate with partners, telecom carriers and members of the alliance to develop virtual and interoperable 5G cell products in compliance with O-RAN standards, Chiu indicated.
Lite-On will focus mid- and long-term operational development on applying its core optoelectronic and electronic technologies to smart power grids based on energy management, company chairman Tom Soong said, adding that this is in line with Lite-On's mid- and long-term strategies for ESG investment.
Lite-On will hike R&D spending from 3.2% of revenues in 2020, 3.7% in 2021 to 4.5% in 2022, with the spending in 2022 focusing on optoelectronic semiconductors, power supplies used in cloud computing, 5G, AI+IoT, automotive electronics, Chiu said. The R&D also covers development of software-based functions for systematic solutions, Chiu noted.
COVID lockdowns in China cities impacted Lite-On's operation much in April but the impact has eased in May, and May consolidated revenues are expected to rebound to the March level, Chiu indicated, adding Lite-On and its supply chain makers have resumed about 70% of normal production in eastern China.
To cope with unpredictable impact of COVID measures in China, Lite-On keeps expanding production capacities elsewhere, Chiu said. Lite-On will begin to construct a factory in southern Taiwan at the end of 2022, with production to focus on automotive electronics. It will begin to construct a new factory of notebook-use power supplies and devices used in AI+IoT in Vietnam, with completion scheduled for 2024. It will expand production capacity for photo couplers at an existing factory in Thailand.
For the capacity expansion, Lite-On has set aside a capex budget of NT$6.0 billion (US$202 million) for 2022, approximately the same for 2021, Chiu indicated.
Lite-On Technology chairman Tom Soong (left) and president Anson Chiu
Photo: Michael Lee, DIGITIMES, May 2022