Seoul Semiconductor and its subsidiary Seoul Viosys recently released their financial results for the second quarter of 2024. CEO Chung-Hoon Lee emphasized the competitiveness of the company's strong patent portfolio in the MicroLED industry. He also announced that the company will commence mass production of MicroLED chips for digital signage in the second half of 2024.
According to reports from Chosun Biz and TheElec, Lee stated during the financial report press conference that Seoul Semiconductor and Seoul Viosys have filed over 1,000 patents in the MicroLED field, making it virtually impossible for other companies to manufacture MicroLEDs without infringing on their patents.
Seoul Semiconductor, the third-largest LED manufacturer globally, boasts a patent portfolio of over 18,000 patents. The company develops and manufactures LED products for various sectors, including lighting, displays, and automobiles, supplying them to customers worldwide.
Seoul Viosys produces UV LEDs and related products through optical semiconductor technology. The company has successfully developed WICOP technology, which allows direct mounting on PCBs without wires, packaging, or lenses, garnering significant attention in the MicroLED sector.
In March 2024, Seoul Semiconductor filed a lawsuit against Amazon in the European Unified Patent Court (UPC), seeking to prohibit the sale of products infringing on its patents. Lee mentioned that Amazon has indicated its intention to respect these patents, with positive developments expected soon. He further highlighted the company's success in winning 103 patent cases, underscoring the competitiveness of its patent portfolio.
Seoul Semiconductor reported revenue of KRW283 billion (approximately US$208 million) in the second quarter of 2024, marking a year-over-year increase of 10.9% and a return to profitability. Seoul Viosys also saw a significant year-over-year revenue increase of 56.5% to KRW188.3 billion and a return to profitability. Lee explained that the losses incurred over the past two years were primarily due to the company's decision to continue accumulating inventory during the Covid pandemic to maintain customer trust.
Despite global economic instability, Seoul Semiconductor's highly profitable automotive business continued to grow. The company also successfully reduced costs by adopting a select-and-focus R&D strategy. Seoul Semiconductor projects a 6% year-over-year revenue increase in the third quarter of 2024, with expected revenue ranging from KRW290 billion to 310 billion.
Seoul Viosys has benefited from rapid growth in the MicroLED business, with Lee announcing that the company will begin mass production of no-wire RGB single-chip MicroLEDs in the second half of 2024. The related products have already received approval from customers in two countries.
Industry sources pointed out that most home-use MicroLED products currently on the market (34x85pm) use horizontal RGB chips. Seoul Semiconductor's vertical RGB chip technology will enable smaller sizes. The company has prepared three products with a pitch smaller than 100pm and is actively marketing them to customers.
Article translated by Jack Wu
