LED industry orders frozen, waiting for the reply to the market order

According to LEDinside statistics, November 2008 Taiwan listed LED companies total revenue of 4 billion 59 million yuan, 5 billion 700 million yuan in October fell sharply compared with the same period last year, is also a significant decline (MoM -28.8%, YoY -36.6%). Which LED grain plant in November revenues totaled 1 billion 559 million yuan, down from last month, a total of about $31.4% in rLED packaging vendors in November, down by 27.1% from the previous month.

The overall output value of LED manufacturers in Taiwan in April this year, 6 billion 100 million yuan in the face of high-end reverse, has dropped by up to 35%. Looking forward to the next few months, December inventory of factors, in January next year because of the Lunar New Year and reduce the number of days to work.

Observed in November, Taiwan's overall grain plant revenue 1 billion 559 million yuan (MoM -31.4%, YoY-41.2%), revenue decline is greater than the level of previous years.

Leading manufacturers of crystal electricity, for example, in November revenue 648 million, the monthly growth rate of -28.2%. The new century photoelectric November revenue of 100 million (MoM-28.6%), monthly revenue continued record highs also marked off. This year, the upstream manufacturers LED substantial expansion of production capacity, when the boom reversed idle capacity increase, part of the upstream manufacturers capacity utilization has been lower than the level of 50%, while manufacturers have begun to face a severe test of losses.

November 2008 LED crystal manufacturers revenue ranking (unit: NT $1 million; source: LEDinside

As for the downstream part of the LED package, November revenue of about 2 billion 501 million (MoM -27.1%, YoY-33.3%), revenue performance compared to the same period last year, a substantial decline. In order to observe the revenue of individual packaging manufacturers, we can see that the order of almost all applications fell. It is quite a success in the NB backlight field billion light, or a white card on mobile phone market as the main force of the East Bay, Hong Qi, even with special frozen light bar specializing in revenue decline of Huaxing, ranging from 20~30%.

November 2008 LED packaging manufacturers revenue ranking (unit: NT $1 million; source: LEDinside

According to LEDinside, many LED industry have said that although the November already entered the traditional off-season, but after mid November, almost all application clients are beginning to cut single inventory adjustment greatly, making the revenue decline beyond the industry expected. Especially in the Chinese market, the rapid decline in the industry boom, many of the smaller LED packaging or application vendors have been closed down phenomenon. As far as the distributor is concerned, the recovery of accounts receivable is more important than the sale of the product, and thus the impact of recent shipments.

LEDinside said that at present there are still some market demand exists, but the Lunar New Year is the collapse of small and medium-sized enterprises peak tide, so many LED manufacturers recently began to strictly control credit object and adjust the inventory level.