Win Semiconductors, one of Taiwan's top-3 GaAs PA (power amplifier) suppliers, has reported consolidated revenues of NT$4.395 billion (US$144.58 million) in the third quarter of 2017, surging 15.19% on quarter and 23.88% on year. The impressive growth was reportedly driven by the firm's indirect foray into the supply chain of Apple's iPhone X with its newly developed VCSEL (vertical-cavity surface-emitting laser) component needed for dot projector in the 3D sensing modules.

The firm's consolidated revenues hit a record monthly high of NT$1.608 billion in September, soaring 13.40% from a month earlier and 44.74% from a year ago. Its combined revenues for the first nine months of the year amounted to NT$11.481 billion, for an annual expansion of 10.45%.

Sources from Apple's supply chain said that Win Semiconductors' shipment of VCSEL component has not been affected by the low yield rates seen in the assembly of 3D sensing modules for iPhone X, as the company mainly handles contract production of the component for leading US laser diode supplier Lumentum, which is Apple's contracted supplier of VCSEL.

Market sources said that after beating several competitors, Lumentum is now the only company that has won orders from Apple for VCSEL component as part of 3D sensing modules for iPhone X. As a contract manufacturer of the component, Win Semiconductor has enjoyed stable expansion in VCSEL shipments to Lumentum since the beginning of the third quarter, with the shipment boom to last into fourth-quarter 2017 and 2018. Though the shipments still command only a single-digit share of its total revenues, the company expects great growth momentum in the months ahead, the sources said.

Market demand for 3D sensing modules is estimated to grow from US$1.5 billion in 2017 to US$14 billion in 2020, as vendors of Android-based smartphones are expected to also launch models with 3D sensors, according to industry watchers.

They said the upcoming 5G mobile communication era is expected to generate new business opportunities for PA suppliers and GaAs foundry houses, as GaAs PA can be applied to mobile chips and various sizes of base station chips. To embrace the business opportunities, Win Semiconductors has readied a full range of technological blueprints to meet customers' needs, according to company sources.

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