Sensing component market conditions will continue to be optimistic next year. Sensing component manufacturer Dingyuan has an optimistic outlook for its operations next year.

This year, Taiwan’s two largest sensing component manufacturers, Opto Lei and Ding Yuan, were incorporated into Nichia's and Fortune's two largest LED companies in Japan and Taiwan. The display market is also optimistic about the future of sensing under the development trend of AI, 5G and the Internet of Things. Components are widely used on the application side, and long-term operations are quite promising.

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Looking ahead, Dingyuan is optimistic about the market demand for sensing components in the future, focusing on a number of mainstream applications. The overall operating outlook is optimistic. The company expects capital expenditures of approximately NT$600 million next year, which will be mainly used for the continuous expansion of sensing component production capacity. This year's production capacity will be expanded by another 30%. It is hoped that next year's sensing components will account for more than 60% of the overall revenue, which will positively help improve overall profitability and gross margin performance.

Dingyuan said that next year’s market demand for sensing components will mainly focus on wearable devices, including smart watches-health monitoring, industrial automation, medical blood pressure, blood oxygen, blood glucose measurement and vehicle-mounted devices, including wipers, seat belts, steering wheels, Applications in the fields of ambient light sensing, temperature control, etc. (Source: Taiwan Economic Daily)