UltraChip has been enhancing its niche-market offerings to include solutions for electronic shelf labels (ESL), small-size AMOLED driver ICs and micro LED driver ICs, while putting less focus on its core LCD driver IC and touchscreen IC products, according to the Taiwan-based fabless IC firm.
UltraChip has enjoyed growing shipments for ESLs in the third quarter, when revenues are expected to register slight sequential growth, the company indicated. Shipments of its other niche-market products also look promising, the company added.
UltraChip expressed cautious optimism about its performance in 2019, as growth in shipments of its niche-market chip solutions will be offset by stagnant growth in STN LCD driver IC shipments.
Nevertheless, with more LCD driver IC suppliers phasing out the STN driver IC segment, UltraChip has become among the few suppliers of STN driver ICs and will benefit from the market heading towards an oligopoly, according to market watchers. UltraChip is expected to enjoy stability in its STN driver IC shipments and gross margin.
Besides, robust shipments of UltraChip's ESL driver ICs will remain a driver of the company's future growth, the watchers said. UltraChip is forecast to ship over 30 million ESL driver ICs in 2018, up 20% on year. Shipments will expand further to top 40 million units in 2019, the watchers indicated.
UltraChip reported consolidated revenues for July 2018 increased 16.2% from a year earlier to NT$120 million (US$3.9 million). Revenues totaled NT$727 million for the first seven months of the year, rising 11.9% from the same period in 2017.
Article translated by Jessie Shen
