Largan Precision held its annual shareholders' meeting on June 6, with chairman Enping Lin offering a candid view of the global economic outlook and updates on the company's progress in smartphone lenses, smart glasses, and emerging sectors such as humanoid robots.
Lin noted that there is currently no strong basis for optimism about the global economy in the second half of 2025, emphasizing that overall performance will largely depend on how well customers can sell their products. Historically, the latter half of the year tends to be stronger than the first, but uncertainties remain.
Addressing concerns about the third-quarter inventory buildup cycle, Lin revealed that Largan's production lines are already running at full capacity. June marked the beginning of material preparation, with actual order fulfillment expected to begin in July. As such, June revenue is forecast to improve over May, with July potentially surpassing June. However, Lin stressed that customer forecasts are prone to change.
On currency risks, Lin confirmed that Largan does not engage in hedging strategies. The company maintains a 50-50 split between US dollar and New Taiwan dollar transactions. As a result, fluctuations in exchange rates are unavoidable, with gross margin impact estimated at around 4% to 5% during May and June.
Lin also provided an update on the company's new plant in Xitun District, Taichung, spanning approximately 23,760 square meters. Construction is expected to be completed in the third quarter, with equipment relocation focusing on smartphone lenses and coating machinery. Currently, Largan owns ten factories and leases two. The company will adjust leasing arrangements based on operational needs.
In terms of technological development, Lin revealed that vision systems for humanoid robots have entered mass production, with shipments to overseas customers expected before the end of the year. Projects with multiple clients are progressing simultaneously, although he likened the robot market's current state to the early days of the auto industry—slow to start but with long-term competitive potential.
For smartphones, Lin confirmed that foldable phone specifications are set to improve in the second half, with longer optical paths and higher magnification. While customer interest in foldables is growing, the timeline for mass market breakthroughs remains unclear. Automotive lenses are also under development and continue to ship in small volumes.
On smart glasses, Lin said Largan continues to trial every specification proposed by customers. However, the market remains unpredictable. Although interest in smart glasses spans over a decade, earlier high-specification designs were difficult to manufacture and commercialize.
He remarked that demand could evolve unpredictably over the next ten years, but Largan is committed to seizing opportunities as they arise. He also noted that unless smart glasses incorporate image-capturing functions, lens specifications are typically modest—reserving high-end optics for smartphones.
Article edited by Jack Wu
