As the LED industry inventory adjustments ends, Epistar has received a large order from Samsung in December, which is expected to spur the Taiwanese LED manufacturers growth, according to an UDN report.
Samsung’s high-end TVs will all be using flip-chip technology in 2015. Many forecast Epistar will undergo exponential growth after completing its merge with FOREPI in 2015. LED lighting shipments will grow exponentially, spurred by new technologies introduced into LED backlight, and high-end displays soaring growth. Epistar’s revenue next year is expected to reach a new height of NT $34 billion, with an annual 20% growth.
Three months ago, Lee gave a pessimistic outlook on the LED market condition, due to client inventory adjustment issues. The three month long inventory adjustments has come close to an end, and emergency orders have even surfaced in December. Epistar estimates its utilization rates will rebound in March.
Advancements in LED backlight technology will become a major industry growth driver in 2015. It has been confirmed Samsung’s high-end TVs will all be using flip-chip technology, but LG will not be adopting the new technology. Epistar is Samsung’s largest TV backlight supplier, and supplies flip-chips, epiwafers, and LED die.
Flip chip’s advantages include stable and uniform electric current conductivity, and enabling higher electric currents. The LED chip also doesn’t have thermal dissipation issues and longer lifetimes that allows clients to save costs, which is why flip chips have not become a mainstream product. Market rumors have indicated Apple’s next generation smartphone iPhone 7 might be employing flip chips for backlight.
Global LED lighting market has reached 1 billion to 1.5 billion LED PCS in 2015, and is projected to reach above 2.5 billion by 2015, said Lee. Although, LED lighting volume has soared, but the prices cannot be estimated. As LED volumes surge, Epistar’s LED lighting percentage will also climb up.
[Editorial Note: This report does not represent LEDinside's analysts or editorial team's perspective, nor should it be viewed as accurate investment information.]