Lite-On Tech will expand production capabilities of optoelectronic devices for automotive use in 2022

Anson Chiu, president of Lite-On Technology. 1 credit

EMS supplier Lite-On Technology will expand its automotive electronics and optoelectronic device production capabilities to Taiwan, Thailand and Vietnam in 2022, according to company president Anson Chiu.

Lite-On will soon start expanding its production capacity for automotive electronic components/devices at its factory in southern Taiwan and invisible light LED devices at its factory in Thailand, Chiu said at an investor conference on Thursday. April 19. The production capacity utilization of LED devices at the Thai factory has increased by about 90 percent, Chiu noted.

Lite-On is also expanding its factory in Vietnam and will set up assembly lines in the United States to quickly serve customers there, Chiu said.

While semiconductor components remained scarce and their cost rose 10-15% in the first quarter of 2022, Lite-On’s gross margin for the quarter fell to 17.14%, Chiu said. Lite-On plans to increase quotes to reflect rising costs in the second quarter, Chiu noted, adding that the lead time for semiconductor components has extended to 56 weeks.

Lite-On initially expected the shortage of semiconductor components to ease in the third quarter of 2022, but as demand for these components used in power supplies for cloud servers and automotive electronics has been much higher than expected , the shortage will not ease until early 2023, Chiu said.

The COVID shutdowns in Shanghai, Kunshan and Suzhou in China have significantly affected the operation of Lite-On’s factories there as well as its suppliers and customers, Chiu said, adding that Lite-On will adjust production capacities at its factories. to minimize the impact.

Of the first quarter 20222 consolidated revenue of NT$41.230 billion (US$1.45 billion), NT$19.879 billion (48.21%) came from IT and consumer electronics product lines; NT$8.626 billion (20.92%) from optoelectronic product lines, including automotive CCMs; NT$12.725 billion (30.86%) from devices used in cloud computing, data centers, servers, network/communication equipment and others, Lite-On said.

Lite-On will continue its R&D investments in electric vehicle (EV) charging solutions and power supplies used in cloud computing and 5G small cells, Chiu said.

For the second quarter of 2022, the main sources of business growth are high-voltage, high-efficiency and high-density power supplies used in cloud computing, optoelectronic devices used in green energy, industrial control, AR/VR and wearable devices as well as electronic devices. devices used in electric vehicle charging, ADAS (advanced driver assistance system) and automotive lighting. Lite-On expects second-quarter consolidated revenue and operating income to increase significantly sequentially.

Lite-On Technology Financial Results, 1Q22 (NT$b)

1Q22

Q/Q

Y/Y

Consolidated turnover

41,230

-7.49%

9.31%

Gross margin

17.14%

-0.14pp

-0.67pp

Operating result

2.981

-17.49%

41.48%

net profit

2.104

-16.14%

-50.65%

Net EPS (NT$)

0.92

Source: Company, compiled by DIGTIMES, April 2022


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