LED plant in the first quarter of 2009 is not optimistic about the 10 communique on the road even worse

Since the first quarter of 2009, LED into a weak quarter, the market is not expected to be high capacity utilization, therefore, the Taiwan area 10 communique on the road will affect the joint fear of LED industry in the first quarter gross margin. The fourth quarter EPISTAR capacity utilization rate of only 3, 4, canyuan utilization rate is low, the first quarter may extend the downturn, the negative gross margin performance. The industry believes that the first quarter of 2009, the first quarter of the gross profit margin fell below 10%.

In early 2008, LED industry optimistic about the industrial demand, a large number of expansion, inventory, the second quarter of the market demand instant freeze, so many businesses bear high inventory. Together with the 10 bulletin will be on the road in the first quarter of 2009, to increase the pressure on the LED industry inventory losses. In addition, the current accounting principle is based on the actual capacity allocation of fixed manufacturing costs, but the future is in the normal capacity equipment amortization of fixed manufacturing cost, when the low capacity utilization of idle capacity but also in the quarter, the current cost of, included in the cost of sales, so the capacity utilization rate is low, will lead to a decline in gross margin.