SMD LED semi annual decline of more than 3 into the third quarter of fear is still down

Although the LED application continues to expand, but the industry expanding output triggered doubts LED industry makes the past pile up in excess of requirement, the average annual price decline of about 20%~30% in 2008, by the weak demand, consumer market, factory price competition caused by the lead, surface mount type (Surface-Mount, Device, SMD) LED optical products in the first half of the 2008 price decline it has more than 3 LED, the industry said, even in the third quarter of the traditional peak season, still does not rule out will continue to fall.

LED industry pointed out that since 2008 the Japanese manufacturers Nichia took the lead price, resulting in high order photometry (side view) downward price pressure, the average price drop of 20%~30% (ASP), resulting in Taiwan region of China LED industry (crystal electric etc.) was forced to cut prices, product gross margin squeeze. In addition, white card and mobile phone manufacturers international demand slowed, the second quarter of the market rebound speed slower than expected, resulting in price pressure is still in decline, but slightly more stable, consumer market confidence will affect the third quarter performance key.

Taiwan LED industry said that the metering product price is due to market demand and industry chain effect leads to poor price, but the direct type (top view) is the problem of falling prices, Taiwan manufacturers price competition, because the 2007 outbreak of 7~10 inch panel product demand, LED industry also have to expand production capacity, technical threshold the increase is not high, the supplier, direct type products are difficult to avoid price pressure, some products decline even as high as 5.

Not only Taiwan factory ASP price fall, Lazard Capital Markets, former investment institutions have pointed out that the Taiwan LED industry to actively markdowns, notebook computer (NB) LED backlight customers gradually lost influence, the United States LED chip maker CREE is also facing the product price decline, the market oversupply problems, will affect the short-term profit performance.

The third season with the traditional season approaching, the upstream chip factory that product price continued to fall, depending on the market demand, high order metering products have been gradually warmed, not the brightness of 1800~2000mcd new product output plus the price is unlikely, is expected to increase gross profit of products. But the downstream packaging factory is that, although the third quarter of the market demand, but the industry capacity gradually open more pressure, if the manufacturers continued to play the price strategy of rush orders, the market price is difficult to stabilize, even season increased demand, prices warning still exist, prediction of single season decline may reach 5%~10%.

Source: DIGITIMES