LED industry can not escape the financial impact, the market needs to wait for the opportunity to return to warm

The global financial tsunami struck, the LED industry can not escape the impact. Weak demand, the traditional peak season ended early, due to low utilization of capacity, the upstream industry decline significantly exceeded the downstream plant. With the release of revenue in October, the second tier packaging plant is also facing an early decline in orders and revenue decline, how to stabilize the full year profit has become the biggest test of LED plant.

LED market dilemma from the third quarter and October revenue performance can be at a glance, the past third seasons the traditional peak season is LED industry sprint opportunity profit, but in 2008 LED upstream epitaxial manufacturers are rare for signs of decline in interest rates for 3 consecutive quarters, profit rate of decline than the market expected, not the busy season atmosphere forecast LED industry in 2008 will be early winter. The past off-season effect from November onwards began to appear, but in October the LED industry was on the downstream of the simultaneous decline in decline, according to statistics, in October the total revenue of LED manufacturers a total of 5 billion 847 million yuan NT, although lower than September's 6 billion 5 million yuan fell slightly, but compared to the same period in 2007 of 11% as the recession, the traditional peak season, the grain factory the recession of 17%, packaging factory also appeared tired, up to 7% years of recession.

Industry estimates, LED industry winter season, the first quarter of 2009 is still hard to fear from the bottom reversal, the market warmed time must wait until the second quarter, but the capacity problem pile up in excess of requirement of consumer products, rapid changes in the structure of the LED market, the mainstream products will lead to re shuffle, LED industry in addition to increase the low orders, OEM the traditional strain path, for niche markets, sound financial health in order to meet the spring in a downturn.

Source: LEDinside