Largan's third-quarter gross margin fell to 42.2% on low smartphone variable aperture lens yields. Capital spending spiked to TWD 8.2 billion in the quarter as Largan bought land to expand its fiber array unit capacity. FAUs are a part of co-packaged optics modules used in data centers.
Largan continues to pioneer advanced handset camera lens and actuator technology to deliver higher-value-added solutions to customers to ensure growth for years to come.
Bears
Slowing smartphone camera upgrades will make it harder for Largan to justify its higher prices and defend its market share.
Largan Precision is the leader in optical lens technology and the world’s largest handset lensmaker by value. The company boasts almost three decades of experience in the production of optical lenses, namely plastic aspherical lenses, which are widely used to manufacture smartphone cameras. It is a major supplier of high-end handset camera lenses to global smartphone brands such as Apple and Samsung. The firm also produces optical lenses for various applications, such as for automobiles, digital cameras, and extended reality headsets. Largan was co-founded in 1987 by Scott Lin and Tony Chen. Scott Lin's son, Adam Lin, is the current CEO and chair. Largan is headquartered in Taichung City, Taiwan, and mainly operates there, employing around 8,000 people.