O2Micro International Limited (OIIM)

Company website 2020 Financial Report Stock Analysis

835

Patents

granted to OIIM in the US

78.3

Million Dollars

in 2020 revenue, a 28.6% increase from 2019

View Our Analysis

The Path to Drawdown: LEDs

First invented in 1994, Light-emitting diodes (LEDs) were designed as high-brightness, high-efficiency light bulbs. LEDs use 90% less energy than incandescent bulbs and half as much as compact fluorescents for the same amount of light. While other lighting technologies convert energy into heat (and wasting most of it), LEDs turn 80% of their energy use into light. They work like solar panels in reverse, by converting electrons to photons instead of the other way around.

There are many environmental benefits of LED lighting. For people without ready access to ample energy, LEDs can be powered with small solar panels and can replace expensive kerosene lamps and their noxious fumes and emissions. Their efficiency in converting energy into light, not heat, helps reduce electricity consumption and air-conditioning load. Where LEDs are used in streetlights, they can save up to 70% of energy and significantly reduce maintenance costs.

Project Drawdown estimates that if LEDs become widely used in the residential and commercial lighting markets, they can avoid between 10.2 - 10.8 gigatons of CO2 emissions in residences, and between 5.9 - 6.7 gigatons in commercial buildings. To achieve this, the global market share of LEDs needs to scale rapidly:

<::marker> In 2018, LED lights comprised 3% of the total commercial lighting market and 2% of the residential lighting market;
<::marker> By 2050, LEDs should account for 95% and 90% of the residential and commercial markets, respectively;
<::marker> That’s 12.82% annual growth for residential LED, and 11.21% for commercial LED lighting between 2018 - 2050.

About

O2Micro International Limited (stock ticker: OIIM) designs, develops and markets components for the computer, consumer, industrial and automotive markets. Headquartered in George Town, Cayman Islands, they have development teams in China and the Silicon Valley and regional marketing centers in mainland China, Taiwan, US, Japan and Korea.

OIIM's Role in Drawdown

For the consumer electronics market (pp. 13-14), OIIM offers liquid crystal display (LCD) and LED televisions, desktop and notebook monitors, portable media players, digital cameras, as well as LED light bulbs. They also sell LED monitors to the computer, industrial and automotive markets

At the same time, OIIM offers a battery management product line (p. 3), including integrated circuits to provide power for liquid crystal display and LED lighting, control and monitoring of battery charging and discharging, DC/DC and AC/DC conversion, etc. These have applications in power tools, e-bikes, electric vehicles, vacuum cleaners, garden tools and energy storage systems.

36-38% of OIIM’s products (p. 7) are sold to consumers and 60-62% to industrial customers.

OIIM continues to innovate on their LED lighting and battery products - ~62% of their R&D spending (p. 24) was dedicated to developing new products in 2020. Some of these new products include LED backlighting for panels, TVs and monitors. OIIM’s LED local dimming technology (p. 14) provides full array LED backlighting for TVs and monitors. This backlighting allows screens to emit more light where brightness is needed and less light where darkness is needed.

OIIM: What We Like

We’ll update this section once OIIm makes sustainability information available.

What We Want to See Improve

Disclose Sustainability Metrics

So far, OIIM hasn’t made any commitments to reduce their GHG emissions. As investors become more concerned about the carbon footprint of their portfolios, companies are being called upon to thoroughly track and report their sustainability metrics. Key among these are direct and indirect GHG emissions, energy consumption by source, and emissions avoided through OIIM’s efforts and products.

Reduce GHG Emissions

Going beyond disclosure, we’re eager for OIIM to start reducing their carbon emissions. We particularly want them to reduce their scope 3 emissions - the emissions throughout their supply chain - since much of their manufacturing is outsourced to a decentralized network of firms (p. 15).

Related LED Lights Stocks in the Climate Index

View All Climate Index Stocks →

Allocated	Company	Description
5.00%	Applied Materials (AMAT)	Applied Materials supplies equipment, services and software for LED manufacturing. LEDs help conserve energy and cut emissions
0.56%	Universal Display (OLED)	Universal Display makes organic LEDs, replacing fluorescent and incandescent lighting and improving building energy efficiency
0.47%	Acuity Brands (AYI)	Acuity makes LEDs, smart lighting and building technology solutions that can improve energy efficiency and emissions from buildings
0.40%	Power Integrations, Inc. (POWI)	POWI makes energy-efficiency products like AC-DC power converters and LED drivers. These solutions help buildings conserve energy and cut emissions
0.28%	Diodes Incorporated (DIOD)	Diodes makes a range of semiconductor products for LCD display, LED monitors and lighting. LED lighting is a key solution for cutting building emissions
0.07%	Veeco Instruments Inc. (VECO)	Veeco makes equipment and processing systems used in making high-tech LEDs. Energy-efficient LEDs help buildings cut energy use and emissions
0.05%	Magnachip Semiconductor Corp. (MX)	Magnachip Semiconductor derives its revenue in part from the promotion of LEDs and solar PVs, through the sale of LED products and products used with solar PVs. It creates no products specifically for the fossil fuel industry.
0.02%	Agrify Corporation (AGFY)	Agrify provides LED lighting and other products for high-yield indoor agriculture. Efficient LEDs are an energy-saving alternative to conventional lights
0.02%	Amtech Systems, Inc. (ASYS)	Amtech Systems makes semiconductor equipment for LED and power device applications. LED lighting helps buildings cut emissions
0.02%	AXT, Inc. (AXTI)	AXT sells semiconductor substrates used in LEDs, thermal imaging, and autonomous vehicles. It makes no products specifically for the fossil fuel industry, thus passing our revenue filter.
0.02%	Energy Focus (EFOI)	Energy Focus makes LEDs for the Navy, federal, state and local governments, and big organizations, helping them save energy and cut building emissions
0.02%	Highway Holdings Limited (HIHO)	HIHO makes electronic components, some of which are used in making LEDs. LEDs are energy-efficient lighting that can cut emissions from buildings
0.02%	SemiLEDs Corporation (LEDS)	SemiLEDs makes LED components for lighting and other applications. LEDs are an energy-efficient lighting alternative that can cut building emissions
0.02%	LSI Industries Inc. (LYTS)	LSI Industries makes LEDs for automotive, restaurant, retail and grocery store customers. Energy-efficient LEDs help buildings cut emissions
0.02%	Orion Energy Systems, Inc (OESX)	Orion offers LED lighting and custom-made energy management systems for big organizations - a solution that cuts energy use and emissions from buildings
0.02%	O2Micro International Limited (OIIM)	O2Micro International makes LED products and lighting. LEDs are an energy-efficient lighting alternative that can cut emissions

O2Micro International Limited (OIIM)

The Path to Drawdown: LEDs

About

OIIM's Role in Drawdown

What We Want to See Improve

Related LED Lights Stocks in the Climate Index

Attend Our Next Webinar

Get Our Newsletter

Talk To A Human