Taiwan LED output decline, capital spending greatly reduced

LED industry downturn, the first half of 2016 Taiwan LED factory capital expenditure over the same period last year decreased by 30%, the photoelectric Association pointed out that this will not be conducive to the long-term development of the operation of LED plant. In addition, LED industry is through the cut, and the whole plant, and adjust the product line, as well as the development of high brightness products four yuan, not visible UV/IR, vehicle niche application strategy, will reduce revenue decline and loss rate, through the transformation process. LED market situation worsened two years ago, the current situation is still grim. To judge from the operating conditions in the first half of this year, Taiwan LED EPI wafer grain, and encapsulation, module production decline is inevitable, and one of the long-term development of indicators of capital expenditures in 2016 compared to the first half of 2015 decreased by 30%, shows the entire industries are still in the doldrums. The first half of this year only EPISTAR, Everlight, Lite, Lunda, rongchuang and other manufacturers have made new energy technology and equipment and other capital expenditure investment, most of the rest of the industry was shrinking sharply. According to statistics Taiwan Optoelectronics Association, the first half of this year, Taiwan LED EPI wafer industry in the grain output of about 17 billion 200 million yuan (NT below), and the 12% recession, encapsulation, module output decline of 6%, amounting to 41 billion yuan. In the first half of 2016, the top ten LED wafers and grain maker revenue declined by 12%, and the loss expanded from 47 million to NT $4 billion 287 million, while the capital expenditure decreased by 26%, only 1 billion 650 million NT dollars. Through the reduction of production, plant integration and adjustment of product mix, the leading factory has accumulated signs of shrinking monthly revenue, but still lost 3 billion 540 million yuan in the first half of 2016. Only four yuan is the main products of the guanlei and Ding Yuan in profit performance. But in the first half of 2016 before the ten LED package, module manufacturers top ten total revenue decline 5%, profit from NT $1 billion 80 million to cut 540 million dollars, capital spending sharply decreased by 31%, up to 1 billion 360 million dollars. Million light revenue flat, net profit growth of 4%, the best performance.