Tyntek cuts sales outlook for 2022

Siu Han, Taipei; Jessie Shen, DIGITIMES Asia 0


LED chip and Si-based sensor chip maker Tyntek has said it is likely to head for a flat sales performance in 2022, as it reversed downward its previous forecast of an annual 15% growth.

Tyntek attributed the downward adjustments to slowing shipments of its optocouplers, sensors and other optical components to the consumer electronics market.

Many device-end vendors in the notebook, handset and wearable sectors have revised their sales forecasts for 2022 due to demand challenges and have thus slowed down order pull-ins, said sources at Tyntek.

As a result, Tyntek saw its revenues fall 17.5% from a year earlier to NT$233 million (US$7.922 million) in May. However, May's figures showed a 4.8% increase from the previous month. Revenues for 2022 through May amounted to NT$1.139 billion, down 13.9% on year.

Tyntek expects revenues to improve in June thanks to improving shipments from the supply chain makers.

Tyntek's 5-inch fab for sensing components is currently operating at 80-90% of its capacity as it has continued to secure long-term orders from clients. However, the capacity utilization rate for the company's production lines for light-emitting devices has lowered to 70% recently.

Affected by the lower-than-expected utilization rate at the light-emitting line, Tyntek expects its gross margin to hover in a range of 23-25% for all of 2022 compared to 25% recorded in the first quarter of the year.

Meanwhile, planned volume shipments of high-end sensing components for automotive, industrial-control and wearable applications from its new 6-inch fab have been delayed as clients have become conservative due also to supply chain constraints, Tyntek said.

To keep the volume shipment schedule of the 6-inch fab on track, Tyntek plans to shift the initial production to focus on in-car ambient light-sensing devices.

Meanwhile, fellow LED chipmaker Everlight Electronics has disclosed May revenues reached NT$1.971 billion, up 44.9% from the previous month. For January-May, revenues amounted to NT$8.833 billion, decreasing 13.65% from a year earlier.

Everlight expects shipments of its invisible LED products to grow in 2022. However, the company said it will suspend capacity ramps for invisible LED chips this year due to improving supply-demand balance.