The electronic components market stabilization

Current iSuppli component pricing trends focus on the electronic component market and the overall market situation of LED.

The good news is that iSuppli believes that most components seem to have hit the bottom of the market. The big question now is: how long will the market linger at the bottom, and even after a significant reduction in costs, it will be difficult for most suppliers to achieve profitability in the current demand situation.

Demand is starting to show signs of recovery, but it is necessary to make sure the demand does exist before upgrading the capacity. If the demand picks up too fast, and the supplier reacts slowly, the current situation could lead to an extension of the time of delivery, which may lead to a short supply of goods. Judging by the duration and severity of the downturn, iSuppli expects suppliers to be cautious.

ISuppli still expects growth in demand to accelerate at the start of the third quarter. The supplier's hesitation to replenish inventory will result in the delay of the whole supply chain. This may result in smaller orders, these orders require faster delivery speed.

Illuminate the future

For high brightness (HB) blue and white LED demand continues to rise, is driving the solid-state LED lighting market. These LED are mainly used for keyboard backlight, as well as mobile LCD.

However, these solid-state lighting market began to slow down, LED manufacturers are actively looking for new applications. An emerging market for high brightness and ultra-high brightness (UHB) LED is a large screen LCD backlight for TVs and monitors, which is currently in its early stages. But with this application turned from the CCFL backlight white LED backlight, LED shipments with this new application has increased dramatically, it is expected that the price of white LED field erosion and competition will intensify.

In addition, the color of UHB or high power (1 Watt) LED performance is to continuously improve the level of identification, vehicle and ornaments, lighting and other fields to open up new applications. In the use of UHB white LED for general lighting, street lighting and parking lighting will be an attractive early market.

With the new production capacity in Taiwan and Mainland China put into operation, HB blue LED prices continue to decline. Due to fierce competition in the mobile phone market price, reducing its appeal, many of the leading provider of HB blue LED are eyeing a new market.