Source: The Star Online (Jan 13, 2014)

Group working with foreign partners to produce three new products in second half

GEORGE TOWN: Globetronics Technology Bhd is working with European and US customers to produce a new range of light-emitting diode (LED) chips, three-dimensional imaging modules and multi-port sensors to be introduced in the second half of 2014.

Group chief executive officer Heng Huck Lee told StarBiz that the group was allocating RM40mil to RM50mil to develop the new products, which would be manufactured at its plant in Bayan Lepas.

“Some of these products are now being qualified by our customers,” he added.

Heng said the new generation LED chips would be manufactured with latest LED technology, which would be used in the general lighting sector.

“The three-dimensional imaging modules are for mobile smart devices. The multi-port sensors, also for use in smart devices, will be able to detect three-dimensional motion such as depth.

“Previously, our single-port sensors can only detect two-dimensional motion,” he said.

Heng said the first quarter of 2014 was expected to be flat compared with the fourth and first quarter of 2013 due to the Chinese New Year holidays. However, he said the fiscal year ended Dec 2013 was expected to close with a record year in the group’s history.

“Our LED and sensor business should contribute 50% to the group’s 2013 revenue while the timing device integrated circuits (ICs) about 35%, with the remaining from our semiconductor IC business,” he said.

For the nine months ended Sept 30, 2013, the group posted a pre-tax profit of RM47.5mil on the back of RM242.2mil in turnover, compared with RM37.4mil and RM204.2mil respectively achieved in the corresponding period of 2012.

According to IHS, a global information firm specialising in diverse global market and economic information, magnetic-sensors will see worldwide revenue increase by 7% to US$1.73bil in 2013 and 7% to US$1.85bil in 2014.

The firm forecasts annual growth of 4% to 8% from 2015 to 2017, when the global market is projected to reach US$2.2bil. Magnetic sensors are used in mobile handsets, tablets, GPS systems and in the automotive industry.