The first quarter of the year is usually a relatively slower period for the electronic sector. However, some Penang-based test equipment companies are projecting a good first quarter for 2015 riding on new customer orders and optimistic forecast for the test equipment and the light-emitting diode (LED) industry.
Elsoft Research Bhd and Pentamaster Corp Bhd have received orders and enquiries for the first quarter, which would enable their respective quarter to record better results compared with the corresponding period last year.
This will be against the trend where the first quarter of the year is usually a slower period as consumer electronic goods manufacturers place all their orders for test equipment before the Christmas season.
Pentamaster executive chairman C.B. Chuah said for the first quarter, the group had secured about RM15mil worth of orders for its test equipment used in the automotive and the smart device industries for checking chips.
“For the second half of 2014, we are in the process of delivering more than 70 units of test equipment with a market value of about RM40mil to the United States, Japan, South Korea, and China.,” he said.
The contribution from the electronics, automotive and the LED segments should generate about RM60mil or 70 per cent of the group’s revenue for 2014.
Chuah said the financial year 2014 ending December should improve substantially compared with the previous financial year.
Elsoft chief executive officer C.E. Tan said the group had received orders and enquiries for the first quarter of 2015.
“For the next quarter, LED test equipment orders are coming from the automotive and general lighting customers in the Asia-Pacific region.
“We expect to close the 2014 fiscal year with double-digit percentage improvement over last year’s revenue, spurred by sales demand from the smart device and automotive sectors.
“For the first six months of 2014, we achieved RM19mil, surpassing our target of RM15mil. “In the second half, we are in the process delivering about 30 testers with special functions, valued at more than RM500,000 each in the market, compared to conventional testers valued between RM200,000 to RM300,000,” he said.
According to Semiconductor Equipment and Materials International (SEMI), the worldwide semiconductor capital equipment market is forecast to increase 20.8 per cent this year to US$38.44bil, compared with 2013’s US$31.82bil, and another 10.8 per cent in 2015 to US$42.6bil.
According to SEMI global vice-president of advocacy Jonathan Davis, the semiconductor industry is seen to grow 5 per cent to 10 per cent in 2014, and noted that all world regions posted growth in sales during May, a statistical factor not recorded since August 2010.
According to the Allied Market Research report, “Global Light Emitting Diode Market (Technology, Application and Geography) 2013 – 2020”, the LED chips and components market is forecast to increase at a compound annual growth rate (CAGR) of 13.5 per cent from 2014 to US$42.7bil by 2020.
The report says the Asia-Pacific dominates the LED market, commanding about three-quarters of the global electronics manufacturing industry. “North America, due to its high-tech forensic and medical applications, leads the market for ultraviolet LEDs,” the report added.