Harvatek LED Packaging: Launches HT-0606 to Capture Indoor Digital Signage Market, H2 Operations Expected to Grow

LED packaging manufacturer Harvatek (6168) is actively striving to return to profitability this year through product adjustments. Chairman Bily Wang pointed out that facing abnormal competition from mainland competitors taking loss-making orders and oversupply, Harvatek launched the industry's smallest RGB LED packaging product, HT-0606, showcasing the company's technological strength in the indoor large-scale digital signage market. Indoor digital signage is expected to drive revenue growth in the second half of the year, and Harvatek already turned profitable in July.

Selective Orders and New Product Deployment

Bily Wang stated that Harvatek has many years of experience in key backlighting and small-to-medium panel backlighting markets, but in the past two years, mainland competitors engaged in aggressive price competition, making many orders barely profitable. Therefore, in the first half of this year, the company actively developed new products to expand into new blue ocean markets, and implemented a selective order strategy in June, successfully turning profitable in July. The product mix in the second half of the year is expected to show a significant contribution from indoor large-scale digital signage.

Indoor Large-Scale Digital Signage Market Opportunities

Indoor large-scale digital signage is moving toward higher resolution and even wireless transmission technology, widely used in indoor large-scale performances, commercial events, and public infrastructure. The demand for high resolution raises the technical threshold for LED packaging, favoring Taiwanese manufacturers over mainland competitors.

Last year, Harvatek launched HT-1010 RGB LED, and in the first half of this year, digital signage-related RGB LEDs accounted for 10% of revenue. By introducing the smaller packaging HT-0606, the product selection is expanded, and it is expected that in the second half of the year, RGB LEDs related to digital signage will account for 20%–30% of total revenue, becoming a growth driver.

Blue Ocean Market and Capacity Outlook

Bily Wang emphasized that in the 22 years since its founding, the past two years have been affected by overinvestment from mainland competitors, leading to abnormal competition in the LED industry. Taiwan manufacturers' capital advantages have diminished and the technology gap has narrowed, so Harvatek is actively seeking new blue ocean markets.

Considering the trend of digital signage moving toward high-resolution FULL HD and even 4K2K, Harvatek's RGB LED packaging products have opened up new blue ocean markets. Coupled with stable growth in small-to-medium backlighting, second-half capacity utilization is expected to reach 60%–70%, better than the under 50% performance in the first half.

• Published Date: 2013-08-23 01:38
• Source: Commercial Times
• Reporter: Yang Xiaofang / Hsinchu