Hongqi due to the major shareholder Long Yuan to IC testing as the main business, semiconductor shortage last year, through long Yuan introduced customers, smoothly into IC packaging, the current revenue accounts for less than 5%, but the company invested in expanding production, expected to 2022 second quarter revenue accounts for 15%, about as long as three times more than, IC packaging will play the next two years growth main.
Hongqi held the law meeting on 30, Deputy general manager Zhuang Fenghui said, next year will invest NT $300 million (about RMB 68 million) capital expenditure to lock the COB MiniLED and IC packaging production expansion, the next two years, IC packaging will play the main growth momentum, for Hongqi, the majority shareholder Long Yuan itself is IC equipment and testing factory, Last year, there was a great shortage of semiconductor production capacity, and non-first-tier customers could not seize the packaging capacity. Therefore, Hongqi has the advantage of entering into the semiconductor industry more easily than other packaging factories.
Chuang stressed that despite the MiniLED and not falling into the Red Sea market, the rest of the LED industry is marginally profitable. Everyone wants to transform but does not want to get into the rigour of the capital race again. Eighty percent of the QFN and DFN processes in IC packages are identical to those in LED packages. Since last year, the third and fourth line customers have been very active in seeking production capacity cooperation with LED packaging factories. Hongqi has its parent company Jiuyuan, so the order source is relatively advantageous.
According to the statistics of Hongqi, the current IC packaging revenue accounts for less than 5%, which is classified as other, but now it has actively delivered samples, including IGBT, automotive, Power IC, IPM and gate Driver. It is estimated that the monthly production capacity will be 40 million next year, and the second quarter will have the opportunity to pass the customer certification. Start to expand the IC packaging revenue share, the target is 15%.
As for the overall visibility of the industry, Mr Chong pointed out that consumer electronics demand is expected to bottom out in the first quarter of next year. In terms of Hongqi demand, demand in the second half of next year is down 20 per cent compared to the first half of next year. However, customers orders have not been cancelled, but deferred to the fourth quarter, so there is a chance that the fourth quarter will be better than the third quarter.
In terms of Micro LED, Zhuang Fenghui believes that whether Micro LED is superior to other display technologies depends on the price and yield. Hongqi will mass-produce Micro LED with P0.09 in the second half of 2023. The company will not invest in the front epitaxial manufacturing, which will focus on chip testing and selection, as well as the mass production process of the back segment.