Lextar will be scaling up investments in 4Q14 to expand production capacity in 2015 to overcome production shortages, according to a UDN report.

The company’s upholds a positive outlook, having made a production capacity breakthrough in June 2014, lowered costs in 3Q14 and optimized utilization rates and product portfolio.

Optimistic about the emerging LED lighting market, Lextar plans to initiate the next phase of production expansion. The company noted reaching full production capacity in upstream EPI-wafer, LED die and downstream products. The company has invested in raising package production capacity by more than 40 percent since second quarter this year.

To raise production capacity, Lextar decided to procure a factory in southern Hsinchu County in Taiwan to meet future demands. Installations at the new plant production line are expected to start in 4Q14, and completed by first half of 2015. Accompanying expanded production capacity, the company’s revenue also was up by 17.69 percent in 2Q14. The company’s consolidated revenue that quarter was NT $3.39 billion (US $126.40 million), with gross margin up 14.5 percent. Net profit also reached NT $163 million that quarter.

Most of the company’s 2Q14 revenue growth came from rebounding backlight and lighting market applications, orders placed by clients have exceeded the company’s production capacity, said the company’s spokesperson Chang Bo-yi.

The third quarter is usually the peak season for TV backlight market. Lextar has been shipping direct-type LED TV, and new wide color gamut TV products. The company also supplies components for Japanese manufacturers high-end TV models. Lighting applications is expected to continue to act as growth momentum in 2015. The company’s new lighting components such as flip-chip COB and White Chip are expected to enter mass production in 3Q14.

Lextar is expected to enter full production capacity in 2H14 with the addition of new clients. Additionally, the company will be able to keep up its upward trend, due to upstream production line plans and lowered manufacturing costs.