In the face of bargaining competition in mainland China, LED factories in Taiwan are actively transforming. Different from other peers in the development of MiniLED, Dingyuan and Guanglei, as the two major domestic LED manufacturers, are aggressively attacking the field of sensing components, which are also quite diverse in application areas. Recently, they have gradually entered the harvest and will expand production to meet new business opportunities.
The industry pointed out that in the early days, LED manufacturers in Taiwan took the lead in entering the lighting market. They experienced a wave of high growth, high profitability and high stock price. With the help of official subsidies, LED manufacturers in mainland China used low-cost bargaining to seize the market. LED factories in Taiwan are in trouble and are facing a crossroads of transformation.
Facing the strong invasion of mainland factories, LED factories in Taiwan are transforming one after another, and they are most active in the development of MiniLED related fields, including Fucai Investment Control, Rongchuang, Everlight, Guanghong, Hongqi, etc., which are merged by Jingdian and Longda. Plants have been invested one after another, and small quantities have been shipped since last year.
Dingyuan and Opto Lei did not vigorously focus on the MiniLED field that most of their peers are paying attention to. Instead, they are developing towards sensing components, and successes have been reported one after another. Dingyuan has achieved good results in medical, education, communications and other applications, and OptoLei's sensing components have even entered Apple's supply chain, which has clearly led to strong performance.
Dingyuan and Opto Lei’s sensing component products are in short supply, and their production capacity has rushed to full capacity. Dingyuan has also revealed that it has been able to "select order production" in the near future and give priority to high unit price products. Overall, the company's prospects are optimistic and order visibility Directly to the end of the second season.
Dingyuan and Opto Lei sensor components are mainly 5 inches, and Dingyuan has a wide range of supply. The products cover medical, automation equipment, aerospace, automotive, consumer and 3D sensing. With the increasing application of sensing components, the proportion of related products in Dingyuan's revenue is increasing year by year, and has now reached about 50%.
Dingyuan pointed out that smart phones, self-driving cars, the Internet of Things, and various artificial intelligence applications have driven the market demand for sensing components. However, the supplier’s limited production capacity and large-scale downstream orders have created a wave of sensing components in short supply. Prosperity scene.
Dingyuan revealed that the recent surge in shipments of its sensing component products is driven not only by the increase in orders from existing customers, but also by the help of new customers brought about by the transfer order effect. In response to the shortage of production capacity, Dingyuan currently uses a price mechanism to select order production, which is beneficial to the trend of gross profit margin this quarter.
Dingyuan said that the current visibility of sensor components has reached the end of the second quarter, and it is clear that the off-season in the first half of this year is not low. With the enthusiasm of market demand, some customers have begun to negotiate with Dingyuan for orders in the second half of the year.
Opto Lei is more concerned about entering the Apple chain and supplying Apple Watch related sensing components. As the new Apple Watch is equipped with a blood oxygen concentration sensor and is rushing to attack the global epidemic prevention market, the market is optimistic that Opto Lei will benefit from Apple Watch to seize business opportunities related to medical testing and drive shipment momentum.
Opto Lei said that in recent years, the company has focused on sensing components. The market conditions in the first half of last year were sluggish. In the second half of last year, it began to show its strength for recovery. Visibility is quite good.