Side cast light supply exceeds demand, LED plant Q1 average profit margin fell 3%~6%

Applied to the mobile phone side type LED light source because the demand is not strong, and the excess supply, ASP (the average price) fell by 15%, resulting in the first quarter of this year the average interest rate of Taiwan LED manufacturers camp fell 3-6%, but capacity utilization improved, and improved product mix, the estimated LED manufacturer second quarter Ying Yi the rate will be compared with the first quarter performance is better.

Taiwan LED vendors in the first quarter business interest rate performance is not ideal, comparison of upstream and downstream epitaxy factory packaging plant profitability, business interest rate in the first quarter compared to the fourth quarter of 2007 fell LED industry, upstream epitaxial manufacturers average battalion increase rate of 10.6%, compared to the fourth quarter of 2007 compared to 16.7% fell 6.1% and downstream; the average interest rate for business firms 12.6%, compared to 15.3% in the fourth quarter of 2007 fell by about 2.7%.

Further pointed out that in the LED application, the phone backlight and other applications consume nearly 30% of LED capacity, so mobile phone shipments for the supply and demand of the LED industry has a very important impact. The first quarter of 2008, the global mobile phone shipments of about 289 million units, compared with the last quarter of the year, although a decrease of about 14%, but compared to the first quarter of last year is still growing by 14%. First quarter mobile phone shipments fell on the LED industry is still a traditional short quarter performance.

In addition, the first quarter of 2008 digital photo frame, DVD Player and other small and medium-sized products demand is not as strong as expected, but also led to one of the reasons for the LED industry demand. The industry also said that since the second half of 2007, small and medium size LCD panel shortage situation is serious, so many consumer electronics industry for various components double booking status than the previous increase. When the size of the small and medium-sized panels after the lifting of the tight condition, the market demand is not as strong as expected, but also makes LED upstream and downstream manufacturers feel the pressure of oversupply.

Overall, LED growth is still unable to keep up with the speed of LED output, so the first quarter LED industry ASP decline of about about 15%. The outlook for the second quarter LED plant performance, the international mobile phone manufacturers side LED demand the visibility is not high, but Power chip and HB LED four yuan demand began to warm, with LED manufacturers capacity gradually increased, the estimated second quarter revenue will grow more than 10% compared with the previous quarter, while the use rate and enhance the productivity improve the product mix, will also enable LED vendors in the second quarter business interest rate compared to the first quarter of good performance.

Source: LEDinside