Genesis Photonics sees rising shipment ratio for flip-chip LEDs

LED epitaxial wafer and chip maker Genesis Photonics saw flip-chip LEDs account for 10-15% of total LED chip shipments in first-quarter 2015 and expects the ratio to rise to 20-25% in the second quarter and 30% in the second half of the year, according to company chairman David Chung.

The overall utilization rate is expected to increase from 70% in the first quarter to 100% in the second quarter, Chung said.

Genesis has become a supplier of flip-chip LEDs for LCD TV backlighting for Samsung Electronics and also landed orders for such products from China-based LED packaging houses in the second quarter. Genesis' flip-chip LEDs are also being verified by LG Electronics.

Genesis expects orders for TV-backlighting applications to significantly increase in the third quarter.

Genesis will also start producing flip-chip LEDs for automotive lighting available in the aftermarket, including headlights and daytime running lamps, in second-half 2015, Chung indicated.

In terms of applications, TV backlighting accounts for 30% of Genesis' LED chip shipments, smartphone backlighting and camera flashes 20-30%, and lighting 40-50%.

To avoid price-cut competition with China-based makers, Genesis seeks profitability rather than revenue growth, Chung said.

In order to reduce production cost, Genesis will begin adjusting MOCVD combination from 80% being 2-inch tools and 20% 4-inch ones to 80% 4-inch and 20% 2-inch later in June, with the adjustment to be finished in the third quarter, Chung indicated.
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