HUGA aims higher by increasing shipment growth over 80%

Apr. 24 Commercial Times (translated partially by HUGA)-HUGA Optotech (HUGA), the top-three LED chip maker in Taiwan, is expanding its production capacity as well as shipment amid the market demand for LED chips far exceeding its supply.

Mr. Dennis Chen, the Chairman, stated that he expects the company to grow its top line by 60% to 80% while maintaining its gross margin in spite of product price erosion.

He also indicated particularly that the LED chips used for backlight of 7 to 24 inches flat panel are in short supply bourgeoning by the robust demand from notebook and street lights. The recent price cut move by Nichia in Japan shows that Taiwanese makers have achieved significant technology break-through on InGaN product.

He also revealed that the company will have new capacity commissioning in the second quarter of 2007 and add new multi-wafer MOCVD reactors to lift the company's current monthly capacity from 350 mn to 600 mn by the end of year. Besides, he also expects the new fab in CTSP to become operational in the middle of 2008.

According to its operating statistics, the shipment in March is climbing up to 290 mn, equivalent to NT$ 130 mn, representing 82.5% and 57.2% growth year-over-year and month-over-month.