Ledlink Optics has disclosed it has been expanding production capacity for secondary optical lenses used in LED lighting at its factory in eastern China since 2020, with the expansion expected to be completed by year-end 2022.
Ledlink said it has set aside a 3-year capex budget of US$9.0 million for the expansion, mostly for procuring large-size plastic injection molding machines.
Secondary optical lenses are used in various LED automotive lights including daytime running lights, headlights, taillights, indicator lamps and ambience lights. Demand for such lenses is growing along with increasing LED lighting penetration of automotive lamps, Ledlink noted.
Ledlink said it has obtained orders from China-based first-tier automotive lamp maker HASCO Vision Technology (Shanghai) with the total volume equivalent to use of 70 injection molds, and shipments scheduled until 2023. HASCO occupies 28% of China's automotive lamps market.
Secondary optical lenses used in LED automotive lighting took up 15% of Ledlink's consolidated revenues in first-half 2021, and rose to 20% in the fourth quarter and is expected to rise to 25% in 2022, Ledlink said, adding that it expects orders for such lenses to grow 30-50% annually in the future.
Inventory value at the end of 2021 stood at about NT$200 million (US$7.2 million), hiking about 85% from a year earlier, Ledlink noted. This was mainly because timing of shipments to some clients was based on their long-term demand, Ledlink explained.
The COVID lockdown in Shanghai is likely to impact shipments from its factory in eastern China to overseas clients, Ledlink indicated.
Ledlink has reported consolidated revenues of NT$105.6 million for March, increasing 45.65% on month and3.38% on year, and those of NT$272.6 million for first-quarter 2022 slipped 10.87% sequentially but rising 4.34% on year.
Ledlink-developed secondary optical lenses
Photo: Michael Lee, DIGITIMES, April 2022
