LED industry: Although the rapid expansion of shrinking, but a healthy development

By the financial tsunami, LED industry demand from the beginning of the second half to excess capacity. At the same time also hit DRAM and panel industry, indirectly makes the original plans to push into the upstream of LED epitaxial industry investment plans for the LED suspension, pile up in excess of requirement industry, there will be electric Lijing (2448), canyuan (3061) and other upstream epitaxial plant bigger competitive advantage.

LED manufacturers overall performance in 2008 is not ideal, in addition to the first quarter benefited from small and medium size backlight strong demand, driven by revenue at the peak and beginning of the second quarter consumer electronics shipments lower than expected, after a disappointing performance. NB had the market expectations of the application, because manufacturers delayed new aircraft launch, substantial contribution is limited, the upstream epitaxial plant because of technology and patent issues "to eat", the manufacturers low capacity utilization problem is increasingly serious, expansion plan for emergency stop. Focus on the future of LCD NB and TV backlight market, the first half of 2008, including semiconductor, panel and DRAM and other large group have entered the LED the key components, then shout out the size of one greater than the market was estimated in Taiwan in 2008 will increase the MOCVD machine 100 taiwan. But only a quarter of the time, the upstream epitaxial plant from "every day to be chased into the order", "every day after the order run, joint equipment factory is also facing the same dilemma.

According to research firm LEDinside statistics, Taiwan LED upstream manufacturers have been 3 consecutive quarters of decline in interest rates, profit margins exceeded market expectations. Show in the global downturn, the substantial expansion of the upstream manufacturers sequelae began to emerge, the problem of oversupply in the industry may have to wait until the second quarter of next year to ease. Outlook 2009, LEDinside believes that the impact of the global downturn does affect the LED related industry chain. Reflected in the demand side, consumer electronics products bear the brunt of the phone and digital photo frame shipments began to repair. Currently only the remaining NB backlight and lighting related products may be the driving force for the growth of the LED industry in 2009. The upstream manufacturers also feel weak demand, began to reduce capital expenditures in 2009. This wave of depression or even deter panel related manufacturers and mainland LED industry expansion schedule, perhaps for LED industry development trend is more healthy.

EPISTAR chairman Li Bingjie said, at present, the upstream epitaxial plant expansion is slowing, there is an epitaxial plant was originally set for 12 MOCVD, block 7, AUO's Lunda photoelectric until now only bought 2 machines. The expansion of crystal electricity has slowed down the pace, at this stage is holding cash waiting for the dawn. Legal person said, unless the new lighting and NB application can quickly fill or excess capacity, excess capacity, sluggish demand coupled with the manufacturers in order to survive, the next is the price war, it is foreseeable that the upstream manufacturers gross margin will continue to decline, this wave of industry winter will be particularly long.

Source: LEDinside