LED chip and Si-based sensor chip maker Opto Tech will set up a platform for integrating sensing system technologies in a bid to offer one-stop services in the segment, according to company president David Huang.

Visible/IR LED chips, VCSEL, Si-based photodiodes and avalanche photodiodes are used in various sensing applications, including ToF 3D depth sensing and range finding, proximity sensing and physiological measurements. Sensing devices are widely used in smartphones, wearables, cars, robots, surveillance systems, drones and industrial automation equipment.

Opto Tech is shifting focus from LED chips to Si-based sensor chips, Huang said.

Si-based sensor chips accounted for 55.83% of its 2020 consolidated revenues of NT$5.590 billion (US$196 million); LED chips for 28.03%; system products (LED displays, lighting, automotive and traffic lighting) for 15.83%, Huang noted.

Of the 2020 revenues from LED chips and sensor chips, 41% came from Taiwan's market, 14% from Southeast Asia, 12% from Japan, 6% from South Korea, and 27% from others.

In response to rising materials costs, Opto Tech has raised product quotes by 10-30%, Huang indicated, adding that the price hikes are not enough to offset the increases in materials costs and therefore the 2021 gross margin is expected to drop.

Opto Tech plans to issue new shares for subscription by Japan-based Nichia via private placement. Nichia holds a stake of about 12% in Opto Tech currently, and through the additional investment, Opto Tech hopes to obtain licensed use of Nichia's LED and VCSEL patents and orders for outsourced production, Huang noted.

Opto Tech president David Huang (left) and chairman Wang Hung-tung
Photo: Company