Led 05 years should be conservative view of the market

Led LED industry last year in an unlucky year, the market size of the industry to pile up in excess of requirement, have lowered earnings. Outlook 2005 revenue levels, due to the sluggish demand for LED market, the majority of the current market view of the conservative view of the industry. Because the LED manufacturers of industry over optimistic expectations, upstream and downstream are increased in order to expand production capacity, low product demand as expected, higher order products can not be quickly cut into the dilemma, since the second half of 2004 revenue performance a lot of dealers are not as good as expected. It is understood that since the beginning of last year because of mobile phone sales, driven by a wave of replacement, coupled with the industry who have made OSRAM white LED patent, and manufacturers are optimistic about the future of automotive lighting and a thin film transistor liquid crystal display backlight applications such as market demand, LED industry on the middle and lower reaches have greatly expanded production capacity, the market also believes that LED will be the future star industry. But in the second quarter, due to China's mobile phone market came to high stock news, plus LED leading factory in Japan Nichia chemical industry are frequently to patent interference orders, so that the LED market conditions including blue LED pile up in excess of requirement, product prices drop sharply, the factory's revenue and profit performance is weak. Because the domestic downstream firms over investment, less than expected growth in shipments, LED market low order products phenomenon of high order pile up in excess of requirement, product demand, the industry believes that although the manufacturers in the production has obvious advantages, but on improving the quality of time still need to do more work, so in 2005 for LED is still worth about a year. In the current LED industry boom in a pessimistic atmosphere, to counter the rise in the level of revenue LED vendors are relatively small. Experienced estimates, this year's annual output value will continue to have a growth of 15-20%, but due to the application of the mobile phone has become saturated, since 2005, the main growth engine LED coming from the car and 7 inches below the panel backlight. It is worth noting that, after 2005 LED in mobile phone application output will no longer grow, instead it will be the car market, estimated from 2006 LED in the automotive market value will rapidly increase, but after 2007, the lighting and display market is a new developing power industry LED. It can be seen that although the high brightness LED future annual output value is still high growth trend, but the growth of the products will be different, such as manufacturers can output different applications with each other and are easy to be adjusted, facing elimination in the fierce competition of fate. The future trend of LED market will move towards high brightness and high power development in Taiwan and the domestic LED downstream is committed to the expansion of production capacity, the majority of the market share in the low-end market has been in high order, however, the future market growth is still very high, mostly American and Japanese manufacturers accounted for according to domestic manufacturers, whether can in terms of quality and further enhance, in order to gain greater market remains an important observation point. As the old mobile phone application key light saturation, new application of back light source for automotive applications are still unable to quickly link up, experience dealers believe that 2005 will be a year when the profit is LED, difficult to have a more substantial growth. Therefore, for the domestic LED industry in 2005, although the opportunity can be expected, but still full of variables.