12 May 2010


Genesis increases prices for green LED epiwafers

Due to the rising price of sapphire substrates, Taiwan-based LED chipmaker Genesis Photonics Inc of Southern Taiwan Science-Base Industrial Park (TNSIP) increased the prices of its green LED epiwafers in April, reports Digitimes. The firm expects the increase to start contributing to its gross margin in second-quarter 2010.

Founded in 2002, Genesis focuses on providing of gallium nitride (GaN)-based LED epiwafers and chips for lighting, display, backlight, and automotive lamp applications, as well as powerful LED chips for scientific, industrial and research applications. The firm is the largest provider of green epiwafers in China, and its order visibility has extended to the end of 2010. It started shipping blue LED chips in March, and expects the new line to account for 30-40% of its revenues in 2010.

In first-quarter 2010, Genesis ordered multiple TurboDisc K465i GaN MOCVD systems from epitaxial deposition, process, and metrology equipment maker Veeco Instruments Inc of Plainview NY, USA. The firm says that it will begin installing MOCVD reactors at its second production plant in Tainan - which it bought from a Japan-based CCFL (cold-cathode fluorescent lamp) maker - and will start production there by the end of third-quarter 2010. A total of 10 reactors will be installed by the end of 2010, followed by eight more in the future. The whole firm should have a total of 53 by the end of 2010.

The company indicated that it is expanding capacity in the belief that LEDs will soon completely replace CCFLs as LCD panel backlights. The monthly capacity of its second Tainan plant will be 130,000 LED epiwafers. Genesis adds that it also plans to establish a third, adjacent plant to further expand capacity.

Genesis’ revenue in April was NT$200.5m (US$6.32m), up 25.2% sequentially and 122.5% year-on-year. Revenues for the first four months of 2010 totaled NT$637.37m, up 134.5% year-on-year.

Growth in April came mainly from the increased prices for green LED epiwafers, as well as increased demand from the billboard segment, which entered the peak season, according to chairman David Chung.

For first-quarter 2010, net profit was NT$63.9m and gross margin was 28.6% on revenue of NT$437m, up 26.7% sequentially and 145% year-on-year.

See related items:

Genesis Photonics orders Veeco MOCVD systems

Sapphire faces shortage in second-half 2010, to be resolved in early 2011

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