LED packaging and module manufacturer HONGKAI is actively adjusting its business strategy to capitalize on the silicon photonics wave that is currently the focus of the market. Looking ahead to 2025, HONGKAI is accelerating its move into the semiconductor packaging field while deepening its presence in the high-margin automotive and smart sensing markets. It hopes to leverage its advanced packaging technology and strategic layout to usher in a new era of leapfrog revenue and profitability amidst the global AI application wave.
HONGKAI emphasized that, in terms of production line layout, the new plant in Nantong, China, is expected to complete production line construction in the first half of this year and is planned to begin full-scale mass production in the fourth quarter. This is not only a key location for developing advanced packaging processes, but will also mass-produce sensors and high-end ambient lighting products in the future, which is expected to make a considerable contribution to the company's revenue.
Hung Kai stated that the company has joined the Silicon Photonics Consortium and is part of the CPO packaging team. Leveraging its chip stacking patents and laser technology, Hung Kai will explore the potential of the LED packaging and testing field within the silicon photonics supply chain and extend its reach from optical packaging to semiconductor packaging. The new Nantong plant will play a key role in this emerging field, demonstrating its commitment to transformation and initiating a new growth trajectory.
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Hung Kai pointed out that its core businesses, namely intelligent sensing and automotive lighting, contribute over 90% of its revenue. To cope with competition, Hung Kai is actively expanding its overseas presence. Its high-end automotive ambient lighting has gained favor with international clients and is expected to contribute to revenue starting this year. In the field of intelligent sensing, in addition to traditional applications such as laptops, gaming, and computer peripherals, sensor products have entered a phase of rapid growth. Chairman Huang Chien-chung emphasized that with the widespread adoption of AI applications, sensing components will become a key driver of revenue growth in the next two to three years.
Hung Kai stated that, looking ahead to 2025, the company is focusing on two main goals: revenue growth and the completion and mass production of its new Nantong plant. Although revenue declined slightly in the first five months of this year, the company expects its operating momentum to strengthen in the second half of the year, driven by the commissioning of the new Nantong plant, expansion into overseas automotive applications, and strategic moves in smart sensing and silicon photonics.
Analysts indicate that HONGKAI will benefit from the large-scale adoption of Smart LEDs in gaming and esports, with gaming application revenue expected to increase by 50% year-on-year, overall operations projected to grow by 30%, and a continued high gross margin of 40% to 50%. Analysts are optimistic that HONGKAI, leveraging its strong foundation in LED packaging and actively transforming its business, will create a new chapter in its operations. (Source: Taiwan Economic Daily)
