Ennostar Consolidates Resources to Drive High-Value Optical Semiconductors Applications in 3+1 Key Areas
February 25, 2025 | TrendForceEstimated reading time: 1 minute
In an effort to optimize its organizational structure and accelerate its optical semiconductors business, Ennostar announced on February 21st, 2025, the merger of its subsidiaries—Epistar and Lextar Electronics—under the unified brand of Ennostar Corporation.
TrendForce reports that Ennostar, leveraging the integration of chip and packaging technologies, achieved a 2024 revenue of US$760 million, ranking fifth among global LED manufacturers with both chip and packaging capabilities. Moving forward, the company will continue expanding into high-value applications to meet growing market demands.
In response to intensifying competition in the LED optical semiconductors industry and the price wars in red ocean markets, Epistar and Lextar initially formed Ennostar Holdings in early 2021 to integrate their technical expertise and resources, maximizing synergy across the upstream and downstream sectors.
TrendForce notes that even prior to the merger, Ennostar had been pursuing a “dual value-added engine” strategy, enhancing both application fields and solution-based upgrades. The company has focused on high-value “3+1” applications, including automotive, advanced displays, and smart sensing, alongside emerging optical communication and high-conversion-efficiency III-V solar cells, reinforcing its competitive edge in the optical semiconductors industry.
Currently, the optical semiconductors industry is placing greater emphasis on automotive and sensing applications. TrendForce projects that the automotive LED market will reach $5 billion by 2029, while the infrared sensing market will grow to $3 billion, with a CAGR of 8% and 10%, respectively, from 2024 to 2029.
The automotive LED sector includes headlights, taillights, ambient lighting, and Micro/Mini LED displays. Infrared sensing applications span consumer electronics, security surveillance, industrial automation, automotive sensing, and emerging robotics technologies.
As these applications demand increasingly precise wavelengths, higher quality, and enhanced reliability from LED chips and packaging, manufacturers with both chip and packaging expertise will be better positioned to meet the stringent product specifications of leading global brands.
TrendForce highlights that as a subsidiary of the AUO group, Ennostar is the only player in the global supply chain that integrates display panels, LED chips, and packaging technologies. This unique positioning bolsters its competitive advantage in next-gen display markets, including Micro LED development and expansion of diversified applications.
Optical communication and high-efficiency solar cells are emerging as new blue ocean opportunities for optical semiconductors manufacturers, given the rapid rise of generative AI and the growing demand for renewable energy. Companies with strong integration capabilities in chip-packaging will be able to capitalize on these expanding markets, driving further innovation and growth.
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