Epitaxial wafer supplier Visual Photonics Epitaxy Company (VPEC) is likely to see its March revenues top NT$300 million (US$10.56 million), buoyed by strong market demand for RF components, according to industry sources.

Demand for optical components such as VCSEL chips for 5G, Wi-Fi 6/6E, LiDAR, and 3D ToF applications is on track to grow steadily, ramping up demand for epitaxial wafers, said VPEC chairman Jian-Lian Chen.

Since VCSEL parts and other compound semiconductor components, especially those for the production of HBT (heterojunction bipolar transistors) and PHEMT (pseudomorphic high electron mobility transistors) for RF and PA applications, are in high demand, VPEC is to see its revenues move upward both sequentially and annually in the coming months, Chen said.

To cope with its expanding business, VPEC plans to boost its capital spending for 2021 to NT$500 million-NT$1 billion, up from NT$90 million set aside for a year earlier.

Among its capital spending, VPEC plans to purchase additional 5-10 MOCVD machines in 2021 for capacity expansion. The company currently has a total of 52 MOCVD machines.

Other industry sources expect demand for VCSEL applications to regain momentum in second-half 2021 or first-half 2022, as Samsung Electronics is likely to renew the use of epitaxial-based ToF devices.

Fellow companies, including Win Semiconductor and Advanced Wireless Semiconductor (AWSC), are also on track to post significant revenue growths for March, said the sources.

VPEC chairman Jian-lian Chen
Photo: Shih-min Fu, Digitimes, March 2021