Taiwan small and medium size applications downturn, LED factory revenue shrink

China's small and medium size panel Market in Taiwan, the current downturn in the market, the Taiwan listed cabinet LED manufacturers due to product applications are still more mobile phones and small and medium size electronic products, revenue profit has shrunk. Including EPISTAR, canyuan, East Bay, Hong Qi, ligitek etc. LED manufacturers, in June this year than in May fell not only revenue ranging from 10%-25%, even more than the same period last year decline. With revenue performance is lower than expected, and the industry fundamentals, small and medium size panel demand visibility is still low, the estimated LED vendors will also shrink this year after the profit.

LED manufacturers downturn in June this year revenue performance in the LED chip, the original crystal electric and canyuan are expected second quarter revenue is expected to increase monthly temperature, but revenues in June compared to May fell 15% and 23% respectively, and compared with the same period last year decreased by 1%-2%. LED package, in addition to the product line of the multi billion light in June revenue steady and sustained growth of 13% over the same period last year, and although the previous month Baihong June revenue reduced 3%, but the annual growth rate is still 10%, including the rest of the East Bay, Hong Qi, ligitek etc. regardless of revenues in June compared with the previous month, compared with the over the same period last year showed a decline. The East Bay month reduction rate of 23%, the biggest decline rate of 33% years; Wang Qi in June revenue minus the rate of 16% month, annual reduction rate of 14%; ligitek month minus 5%, minus 15% years.

Manufacturers in Taiwan in China said the June performance in the doldrums, although there are also affect the customer end of the quarter inventory factors, many customers do not purchase starting from mid June, but the main product market demand is another main factor. Due to the great recession, the market demand environment in mainland China is not as expected, including mobile phone, 7 inch digital photo frame and backlight demand began to fall from the market in June 5 months late, the product is not good, after entering in July the visibility is not high.

Although the LED lighting applications and large-size backlight application potential growth momentum is considerable, but the main products in Taiwan LED manufacturers are still the low order lighting and mobile phone consumer electronic products, small and medium size backlight applications are, including canyuan, Bai Hong, East Bay, Hong Qi, ligitek and so on, mobile phone application and small inch electronic applications products together accounted for more than the proportion of revenues reached 60%-70%, mobile phone and so small and medium size products demand still dominates the domestic LED companies operating in the short term. The mobile phone and small and medium consumer electronics market weakness in the near future, not only makes the relevant panel manufacturers affected by the impact of the relevant LED vendors revenue also declined, the expected profit will shrink.

Source: Lean news