LED automotive lighting module maker Excellence Optoelectronics (EOI) will expand production capacity at its factory in Michigan State of the US by adding a production line in the fourth quarter of 2021, according to company president Fanny Huang.
There are two existing production lines for LED automotive lighting modules at the factory, Huang said. Besides, EOI currently has 11 such production lines at its factory in northern Taiwan and seven ones at that in southern China, Huang noted.
EOI is constructing a building in annexation to its existing headquarter building in northern Taiwan, with the new building to be completed in the fourth quarter and come into use to produce innovative LED devices with matched use of LED automotive lighting modules beginning the end of 2021.
EOI originally expected 2021 consolidated revenues to grow 25% on year, but January-July 2021 consolidated revenues of NT$2.102 billion (US$75.2 million) increased 13.22% only on year due to the impact of coronavirus pandemic, Huang explained. 74.95% of the 7-month consolidated revenues came from North America, 11.49% from China, 9.36% from Taiwan, and 4.20% from other markets.
While EOI has utilized 80-90% of total production capacity, clients' taking shipments have been 25-30% behind schedule due to the short supply of automotive semiconductors and electronic components, Huang noted. EOI expects the situation to improve in the fourth quarter of 2021.
Currently, Canada-based Magna International, US-based Flex-N-Gate, Germany-based Hella KGaA Hueck, and South Korea-based SL are EOI's four largest clients. Besides, EOI has won some automakers' adoption of its LED automotive lighting modules for new car models.
In addition, EOI has stepped into miniLED products and will begin shipments for large-size miniLED fine-pitch displays, smart dashboards based on touch/gesture recognition technology, IoV (Internet of vehicle)-based automotive interactive taillights in 2021. Furthermore, EOI will develop innovative miniLED car-use devices in 2022, including SiP (system in package) interior ambient lamps, head-up displays based on flexible transparent circuit boards and AR, smart headlights based on AI image recognition technology.
EOI aims to become one of the world's largest suppliers of LED automotive lighting modules and occupy 20% of the North American market for such modules.
EOI posted consolidated revenues of NT$846.0 million, a gross margin of 18.92%, operating profit of NT$7.5 million, a net loss of NT$16.4 million for the second quarter of 2021, leading to consolidated revenues of NT$1.830 billion, gross margin of 20.65%, operating profit of NT$56.6 million, net profit of NT$18.2 million for the first half of the year.
