LED probing, testing and sorting equipment maker FitTech will expand business operation through increasing sales revenues from outsourced LED and mini LED testing and sorting services as well as semiconductor micromaching and testing equipment, and aims to hike the revenue proportion for such non-LED equipment to over 20% in three years, according to company chairman Hsu Chiu-tien.
Along with generally decreased demand for consumer electronics due to inflation, adoption of mini LED backlighting for LCD TVs and IT products has been short of original expectation, Hsu said. In addition, pandemic lockdown in China has impacted LED supply makers' production there, Hsu noted. Consequently, demand for mini LED probing, testing and sorting equipment in the Chinese market significantly shrank in the second quarter of 2022, Hsu indicated. However, order inquiries from some of China-based clients have recently increased and thus there may be shipments for urgent orders in the fourth quarter of 2022 or early 2023, Hsu said.
Despite the current weak demand, demand for mini LED backlighting tends to be growing on a long-term basis as long as sufficient local dimming zones are adopted, therefore demand for mini LED probing, testing and sorting equipment will be growing accordingly, Hsu noted.
In contrast to mini LED probing, testing and sorting equipment, demand for outsourced LED and mini LED testing and sorting services remains stable in the third quarter of 2022 and orders for outsourced laser diode testing and sorting services from optical communication device makers are on the rise, Hsu indicated. Besides, FitTech will extend such outsourced testing and sorting services to compound semiconductors and VCSEL, Hsu said.
In view of fast growing demand for semiconductor devices along with booming development of 5G, satellite communication and electric vehicles, FitTech for the first time is showcasing high-voltage, large-current testing equipment for wafers used to make discrete devices and power ICs at SEMICON Taiwan 2022 taking place in Taipei during September 14-16. Such equipment can be used to test resistance to high temperatures and features high-precision positioning for moving wafers and high efficiency in changing wafers.
FitTech has begun to ship semiconductor micromaching equipment to several Taiwan-based IC packing service providers, with the corresponding revenue proportion exceeding 5% at present. For the new wafer testing equipment, FitTech aims to reach a corresponding revenue proportion of about 5% in three years.
FitTech has reported consolidated revenues of NT$214.0 million (US$6.9 million) for August, dropping 38.25% on month and 57.47% on year and the lowest monthly level in the past nearly two years, and those of NT$3.850 billion for January-August, increasing 7.82% on year.
