LED packaging house Ledtech Electronics will focus on the indoor lighting and low-temperature lighting market in 2011, and aims for 50% revenue growth on year, which is about NT$2.6 billion (US$89.27 million), according to company chairman Frank Liu.

Liu indicated that Ledtech's revenues increased up to 50% on year in the first half of 2010, but dropped significantly in the second half mainly due to increasing competitors in the market which prompted clients to expect price drops and become passive in placing orders.

Ledtech noted capex for 2010 was NT$330 million with a cash flow up to NT$680 million, of which expenses for equipment were NT$180 million, and NT$100 million was spent on a production plant. With the company completing its capacity expansion, capex for 2011 is expected to drop to NT$10.2 million.

Revenues for components (SMD, lamp and display) accounted for 45% of Ledtech's total revenues in 2010 and 55% for assembly including general lighting and low-temperature lighting products. Ledtech expects assembly business to account for 70% of its total revenues in 2011, while component business continues to have higher gross margins. Gross margins in Europe will reach over 40% and remain at around 30% in Taiwan, China and Hong Kong.

Ledtech expended its LED packaging capacity in 2010 to 60 million units for SMD, 80 million units for lamps and five million units for displays.