The demand for sensor components is hot, and the LED plant's new capacity is estimated at Q3 small output.

With the explosion of sensor market, Tai Yuan LED plant is actively expanding its business opportunities through its new South China plant. The new capacity is expected to start small output at the end of the third quarter. In the future, it will account for more than 60% of the revenue from the sensing business, and will be the most pure LED sensor unit in Taiwan stock market.

Ding Yuan said that the hot demand of sensor components drove the company's operation in recent years to pick up. At present, Ding Yuan production measurement component revenue accounts for about four to 50%, mainly for electronic whiteboard, wearable devices and other terminal applications for bulk. With the rapid development of medical, security control, vehicle, AI, self driving, 5G Netcom and optical communications and other high level applications, the demand for sensor components continues to increase, and some customers have already sent samples and certification. Future sensing business will continue to push up business growth.

In terms of capacity layout, Ding Yuan said that the company's sensing element production line is fully loaded, plus the new production line is expected to install equipment in July and trial production in September, hoping to mark the second half of the year. At present, the monthly production capacity of the Ding Yuan sensor is about 5 inches and 60 thousand pieces. The company is making 6 inches of monthly output of 30 thousand new capacity.

As the output of each 6 inch chip is equivalent to that of 1.75 5 inch chips, the total capacity of the sensor component will reach a significant increase of 87.5% after the conversion of the new capacity. It is estimated that the new capacity equipment will be introduced in the third quarter and will be put into operation in September. The company said that with the new production capacity coming out one after another, this year's contribution will continue to expand.

In recent years, Taiwan based LED factories have been searching for niche markets for transformation under the mainland's price competition. After the launch of the Dingyuan plan and the new capacity coming out, the revenue share of sensor components will take off from 60% and contribute significantly to the operation. The company said it will become the most pure LED sensor plant in Taiwan.

Source: Economic Daily

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