LED epitaxial wafer and chip makers Opto Tech and Tyntek expect silicon sensor chips to be the main source of business growth in the future and therefore have expanded production capacities for the product line, according to industry sources.
With capex of about NT$400 million (US$13.1 million), Opto Tech completed expansion of monthly production capacity from three billion silicon sensor chips to 3.6 billion at the end of June 2018, and has obtained orders with shipment scheduled until September.
Opto Tech produces silicon sensor chips mainly consisting of photo diode chips, photo transistor chips and Zener diode chips, with such chips mainly used in smart wearable devices as well as automotive lighting. Major clients for thr products are from Europe and Japan.
Shipments of silicon sensor chips used in smart wearables will increase sharply beginning July because the number of such chips used in a wearable has increased from two to 6-8 and will increase further to 10-12 to hike measurement accuracy, with global demand for smart wearables continuously growing.
Opto Tech also produces infrared LED chips for making reflective optical sensing devices used in smart watches and wrist bands to measure heart rates and blood SpO2.
Opto Tech recorded consolidated revenues of NT$470.6 million in June, falling 3.48% sequentially and 1.52% on year, and those of NT$2.699 billion for January-June dropped 8.87% on year. Of the January-June consolidated revenues, 47.65% came from silicon sensor chips, 33.28% from visible- and invisible-light LED chips, 19.07% from LED lighting and displays. The revenue proportion for silicon sensor chips is expected to exceed 50% beginning third-quarter 2018.
Tyntek is setting up a factory of 6-inch epitaxial wafers to expand overall production capacity by 50%, with completion scheduled for September 2018.
Tyntek posted consolidated revenues of NT$279.4 million for June, decreasing 3.73% sequentially but increasing 1.14% on year, and those of NT$1.650 billion for January-June rose 7.35% on year.
Silicon sensor chips accounted for 50% of the half-year consolidated revenues, LED chips for 45% and InP-based chips for making fiber-optic communication receiver devices 5%.