The oversupply in the LED chip market continues in 2018. The market demand is estimated to recuperate in the second quarter; however, it will still need new technologies such as Mini LED to ease the oversupply, according to Biing-Jye Lee, Chairman of Epistar. The Taiwan-based LED chip manufacturer schedules to ship Mini LED-based products for smartphones in the third quarter of 2018 and expects the new technology to bring positive financial results.
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(Image: LEDinside) |
Lee explained that the LED chip oversupply resulted from Chinese makers’ new capacity still has a strong impact on the industry. The demand in Q1 was tepid, while that in Q2 is likely to bounce back. Despite that, chip prices might still be down as long as the oversupply remains.
Epistar intends to develop new technologies, such as Mini LED and lasers, to offset the impact, said Lee. Last year, the company announced its ongoing development of Mini LED-based applications. It now plans to ship Mini LED smartphone backlights in Q3.
Epistar also focuses on VCSEL. It is reported to start producing 6-inch VCSEL wafers for iPhones in 2Q18. In the second half of 2018, it will also roll out VCSELs for Android phones. The LED chip maker is optimistic about its development in this field.
As for Micro LED, it will not be a revenue-generating application until at least 2020, Lee continued. Both the LED and display industries try to lead the supply chain. The supply chain requires better structuring before moving on to the next step.
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