Chang Wah Technology (CWTC) LED leadframe business has shown strong growth this year, as the company makes breakthroughs in pre-molded leadframe technology, reported Money DJ.com.

CWTC is a subsidiary of the Chang Wah Electromaterials (CWE) group is to be listed on the Taiwan bourse by September 2016.

The company’s main product has been LED leadframes, and completed its pre-mold leadframe technology to develop pre-molded quad-flat no-leads (QFN) leadframes, as it prepares to become a key supplier in the IC substrate market. This will make CWTC a pioneer in the IC manufacturing sector, financial institutes estimate LED lighting’s demand for Epoxy Molding Compound (EMC) will also continue to grow. At the same time, IC substrates hold great potential and will become the company’s main revenue source from 2016 to 2017.

CWTC press conference revealing its latest financial results, and many senior ranking officiers from the company all attended the press conference. (LEDinside)

CWTC was founded in 2009, and is a specialist in MEC leadframe manufacturing, producing 3.35 billion leadframes annually. The MEC leadframes are mostly for LED applications, and some of its main clients include Cree, Osram and Philips.

EMC leadframes are usually comprised of metallic wires and epoxy that are combined through pre-mold technology. EMC leadframes used in LEDs usually are anti-UV rays and reduces color shifts, have high thermal resistance and does not deform. It is also price competitive than competing ceramic substrates, and is more durable and smaller than earlier polyphthalamide (PPA) leadframes.

Emerging LED industry revives CWTC EMC leadframe revenues

Ad LED lighting gradually replaces conventional incandescent lighting has created a growth momentum for CWTC’s EMC leadframes for LED applications.

LED lighting industry’s Compound Annual Growth Rate (CAGR) will reach 12% from 2014 to 2018, and EMC integrated mid-power LEDs will also replace high power LEDs to become the mainstream product in the LED lighting industry.
CWTC revenues rebounded in the last six months, due to rising LED lighting demands.

The LED package manufacturer reported its revenues soared 38% year-on-year to NT $219 million during first half of 2016, and its gross margins inched up 4.6% annually to 32.7%.

Applying pre-mold LED leadframes in sensor and MEMS

CWTC has been investing in R&D in recent years, and successfully developed the IC-packaged pre-mold QFN leadframe in 2015. The leadframe can lower client manufacturing costs, improve efficiency, and there is the opportunity that the company will obtain an order from clients recently. CWTC has already sealed a deal with American manufacturer IDM to apply the pre-mold QFN leadframes in automotive electronics, which financial institutes estimated will be mass produced in 2017.

CWE was founded by President Canon Huang in 1989 and is the parent company of CWTC, JMC Electronics, Wellstech and others. The subsidiaries are mostly involved in manufacturing, and have a different distribution model than CWE. JMC Electronics and CWTE which will be respectively listed on the Taiwan bourse, and emerging stock market are both experts in the IC substrate industry that has high added value. In the future, these substrates can be applied in car electronics, industrial applications, and making thinner electronic products.