Crystal power: LED overall demand recovery than expected late

In April 17, 2008, Taiwan Dachang LED epitaxial crystal electric (2448) chairman Li Bingjie pointed out that the LED from the current market conditions, the overall demand recovery momentum than expected to come late, and indeed expected gap appeared, April sales situation should will be better than March, but it only belongs to the stage of behoove, LED still does not appear due to market conditions the back temperature strength, May orders to now also is not completely clear, look at this year's LED growth rate of the overall industry can indeed as expected, has been worthy of concern, especially the continuity of the impact of the U.S. subprime problems brought about by the second half of the season of electronic products demand, it remains to be seen.

Li Bingjie said that the first quarter gross margin is lower than the market expected, the main product sales or combination of poor, higher order mobile phone application products demand is still in the off-season, but the overall product ASP also because of seasonal factors appear obvious decline, and the decline (10% to 10% five) is bigger than expected, secondly, overall capacity utilization rate of only six to 70% in the fall (at four yuan LED about 70%, about 60% to 60% blue LED five), also affect the overall gross margin performance.

In addition, Li Bingjie also evaluated, if the second half of the season of electronic products demand indeed by the continuity of the impact of the U.S. subprime problem, it probably will be more detrimental to the crystal internal challenges 1 billion 50 million yuan (NT) monthly revenue record high, on the other hand, if you can avoid the influence of the second half of the year, gross margin performance should be gradually rise, and is still continuing closer to 30% chance.

The outlook for the second quarter operating conditions, Li Bingjie also pointed out that since April, including mobile phone market demand side has been recovered, the amount of orders about 1 billion yuan (NT) level, but the strength and speed of recovery seems to be slower than expected point, orders from the client so that the current is not as expected, but continued in the first half of the crystal electric expansion state, that appeared in the overall supply and demand gap, the overall order visibility is only around 1 months.

In addition, the backlight market by LED in NB, it is the overall progress than expected late, the industry supply chain into real time course and original production is expected to have a gap, but also because of this, the present stage NB LED backlight products supply is to Japanese, or in the crystal itself in order to have a better opportunity to OEM business, real Department of Taiwan LED industry benefit degree is still very limited.

Source: Lean news