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Ledtech strives to maintain gross margin

Siu Han, Taipei; Steve Shen, DIGITIMES Asia 0

LED packaging service provider Ledtech Electronics intends to keep its gross margin stable in the second half of 2022, during which revenue will likely come below that for the first half, according to sources at the Taiwan-based company.

The impact of inventory adjustments on clients and the off-season effect on the low-temperature LED lighting devices will contribute to the relatively weak performance of its LED business in the second half, said the sources.

According to the sources, the company has been shipping its LED components and modules to Chinese clients mainly to produce white household electronics appliances. However, Chinese clients have slowed down their pull-in momentum due to weakening consumer demand.

Meanwhile, the company's clients in Europe and the US who have been buying low-temperature LED lighting products primarily for industrial applications have also recently held back their orders due to seasonality, added the sources.

However, the company expects the order visibility of low-temperature LED products for 2023 to become clear by the end of this year.

The company plans to expand its UV-C LED disinfection solution business further to include B2B in addition to its current focus on B2C operations.

Under the plan, the sources continued, the company will collaborate with a healthcare equipment distributor to promote its BioLED-branded UV-C wall-mounted antibacterial devices to hospitals and healthcare institutions.

Leadtech has been developing its BioLED disinfection products in cooperation with ams Osram, the sources noted, adding that sales of the LED-based disinfection devices accounted for 5% of its total revenue in the first half of 2022.

The company posted revenue of NT$57 million (US$1.881 million) for August, decreasing 33.7% from the previous month.

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