LED industry into the winter ahead of the industry is facing severe test

The global financial tsunami hit, consumer electronics market demand also follow the LED industry can not escape the impact of a sudden turn for the worse, and weak demand, the traditional season early sadly ended, and the low rate of capacity utilization, the upstream industry decline substantially more than the downstream plant, with October revenue report, second tier packaging factory early facing austerity and order the decline in revenue, how to hold the annual profit has become the biggest test of LED plant.

Expand from blue LED application become the market mainstream products, LED industry, energy saving and environmental protection industry to catch the trend, arch is the rising star potential industry, but to enter the LED industry to make money, is a university asked, will encounter many challenges in 2008. The past products factory revenue in the largest proportion of mobile phone application, but with the global market saturation, the official suppression white brand mobile phone, mobile phone orders turned and depression, small and medium size backlight panel 2007 glory unexpectedly from red to black, and the king suffered substantial bargain gas as expected and come to grief.

But LED NB slow start, the proportion is still low and lighting products, portable products such as mobile phone market in 2008, the small size of the share of up to 36%, as the main sales market, although the overall LED industry growth slowed down, but the product application of downstream packaging plant diversity, price adjustment flexibility, with high brightness LED market growth, and the output value in 2008 the profit is still better than the upper grain factory. According to statistics, high brightness LED products to expand the application, and the packaging capacity expansion, the annual output value of up to 14%, about NT $50 billion 700 million, so in a downturn, packaging factory if we maintain the average growth of more than 14%, it is to produce a pass card.

As for the grain factory situation more difficult, LED grain factory leading crystal electric in 2007 1 to complete the 3 big acquisitions, only to maintain the market price order in 2008, with new entrants buy powerful machines, grain production capacity expansion, product price and return to the Warring States period. It is reported that in 2008 to increase the upstream design capacity of 40%, but the price fell sharply, the output value of only a slight growth of up to 29 billion 800 million yuan, up to $8%. Although the industry feel the lack of market growth momentum, the introduction of new machines to suspend progress, but in the case of poor capacity utilization is still poor, the average gross margin in 2008 will continue to fear dropping, and even extended to 2009.

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, while 6 billion 5 million yuan compared to September fell slightly, but the decline of 11% compared to the same period in 2007, as the performance of the traditional peak season, the recession of grain factory 17%, packaging factory also appeared tired, up to 7% years of recession.

The collapse in global demand, the LED industry winter season, the first quarter of 2009 is still hard to fear from the bottom reversal, the industry estimates, 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 go to the LED industry reshuffle, in addition to increased OEM, low orders of the traditional strain path, seeking a niche market, to improve financial constitution in a downturn, Houzhi strength for spring.

Set state Liu Jionglang: future LED development is not optimistic nor pessimistic, "survival of the fittest"

In recent years, LED is regarded as the future of the new trillion industry, due to the huge business opportunities, faced with many new entrants, the rapid expansion of the market after the oversupply, more difficult to profit. Dramexchange chairman Liu Jionglang said that many industries including DRAM, solar energy, automobile, television and so on, are facing the same problem, the future is not optimistic, but not pessimistic, believe such as Darwin's theory of evolution said the "survival of the fittest".

In November 14th, Liu Jionglang attended the LEDinside held "LEDforum 2008:LED foresight and innovation application seminar" speech pointed out that the traditional capitalism to change, should be directed to "creative capitalism" development, not only do capitalism advocate "make" to "do good, not only the left hand, right hand to spend money, but his hands together. Money is a good thing, meaningful things. Liu Jionglang believes that in the face of energy crisis, and global warming, LED, solar energy and other energy saving green industry can not only make money, but also do good, this is a creative capitalism, standing in the position of the enterprise, should use the current opportunities, in addition to the pursuit of technology, taking into account the social responsibility, environmental protection and energy. However, because of the big business opportunities, but also attracted a lot of new entrants to invest, leading to increased competition in the industry, and even the problem of oversupply, it is worrying whether LED will embark on the footsteps of DRAM. Liu Jionglang said that there is indeed a similar development, but the survival of the fittest, as to the survival or success of the practice, in addition to the technical advantages of efforts, the level or vertical integration and the direction of development.

Source: projection Era