Unity Opto LED Lighting Revenue Proportion to Increase 30 Percent

Taiwanese LED package manufacturer Unity Opto began construction plans for a new factory in 2013 in order to strengthen their LED lighting strategy. The increase production lines for LED lighting modules are estimated to begin production before the end of 1Q14. The injections from the new production line are anticipated to increase the company’s revenue proportions from 23 percent in 2013 to 30-40 percent in 2014.

Unity Opto is optimistic that lighting demands in 2014 will grow, spurred on by the ban of incandescent bulbs in early 2014 by the U.S. government. The company has already strategized the market channel in the U.S. for quite some time, and is confident 2014 will benefit from large U.S. LED lighting replacement opportunities. Unity Opto LED bulbs are currently sold in Costco, Home Depot, Walmart, and Target.

Unity Opto has gradually been moving their business towards downstream modules, lighting source, and lamp product development. Compared with unit price for LED package components, light source is around 3-5 times more and lamps are 10 times more. Therefore, Unity Opto estimates that capital in 2014 will be around NT $300-350 million (US $9.9-11.6 million), with the majority used to increase module and assembly production line. With the increase in downstream production capacity, the company’s average product unit price will increase.

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