Taiwan LED industry trends: Q3 is expected to grow slightly

It is reported that in 2008 Q2 compound semiconductor component output value of NT $15 billion, compared with the same period in 2007, a slight increase of 7%. Among them, the LED market due to the traditional thin quarter and the continued production capacity of the new production capacity, showing demand growth, price decline, the overall output value is only 5% growth over the same period in 2007. In addition, driven by the needs of small and medium size display panel, the high order LED capacity utilization is high, but the low order LED capacity utilization fell sharply.

Due to the continuous improvement of LED technology, making LED applications continue to expand, including NB with LED backlight module and LED lighting, making the beginning of 2008 LED vendors continue to actively expand the factory in order to meet the needs of the market.

It is understood that, with the continued rise in raw materials, manufacturers to adjust product prices or adjust the product line should be. The main use of the zero component factory of copper from the end of 2007 to $6675 per metric ton, rising to $8775 in June 30, 2008, a lot of spare parts factory plans to increase the price, but it will also allow manufacturers to produce cost rise, chain reaction. As the price back to $8500 highs, so PCB CCL price 3%, for PCB manufacturers, the material cost burden, so manufacturers gradually price hike. At present, NB and MB PCB have successfully raised the price of 5% to 10%. LED lead frame with copper is not low also sustained prices, such as LAMP, accounting for I-Chiun has very high rate hike of 10% to 15%, the reaction raw material prices and the appreciation of the new Taiwan dollar.

Outlook Q3, under the impact of global inflationary pressures, combined with the traditional prosperous quarter, the expected market demand for communications products will show a slight growth.

Source: LEDinside