LED chip maker Huga Optotech posted 2010 revenues of NT$4.4 billion (US$150 million), a new company record of NT$840 million in profit and NT$2 in EPS. With orders from China coming in in the first quarter, Huga projects 2011 revenues will rise 50% to challenge the NT$7 billion threshold.

Huga applied for listing on Taiwan's over-the-counter (OTC) market in October 2010. The company will provide 2010 financial reports at the end of February as part of the approval process and should go public in the first half of 2011.

Judging from current demand from LED chip packaging clients, sales will rebound in March, the company said. However, Huga remains concerned about orders from South Korea-based TV vendors and whether they will increase in-house LED chip production. Market visibility should improve in the second quarter, the company indicated.

The China market will be Huga's main focus for 2011, according to industry observers. China represented less than 20% of its 2010 revenues. The company hosted three product introduction events in China in December, and thus, it expects more orders from the China market at the end of February and March. Most demand will be for TV backlight applications.

Huga has yet to finalize plans to set up production facilities on the mainland, but will likely first establish a sales office.

Besides orders from TV vendors based in Taiwan and South Korea, Huga is also developing low-voltage products for mobile devices such as smartphones and tablet PCs.

Huga's main shareholders are Epistar and Everlight Electronics with 50.2% and 7% stakes, respectively. Other institutional investors include Unity Opto Technology and WIN Semiconductors.