The inventory adjustment and closures in November revenue, LED Taiwan factory performance frozen face a severe test, the next few months

According to industry research firm LEDinside statistics, November 2008 Taiwan listed LED vendor revenue total of NT $4 billion 59 million yuan, 5 billion 700 million yuan compared to October fell sharply to nearly 3, compared to the same period in 2007 is also greatly decline up to 3 to 6 (MoM -28.8%, YoY -36.6%). LED chip factory in November, the total revenue of 1 billion 559 million yuan, down by more than in October, LED packaging manufacturers in November revenue of about 2 billion 501 million, compared with a decline of $27.1% in October.

Overall, LED manufacturers in Taiwan listed OTC output by 6 billion 100 million yuan in 2008 April high-grade face inversion has decreased up to 35%. Looking forward to the next few months, in December there are inventory factors, in 2009 and the number of days in the lunar new year because of the reduction in the number of days, in addition to the impact of output, the actual sales are also affected by the fear of the spread of. In the next few months, LED manufacturers will face a more severe test.

Observed in November, Taiwan's overall chip factory revenues of 1 billion 559 million yuan (MoM -31.4%, YoY-41.2%), revenue decline is greater than the level of previous years. Leading manufacturers of crystal electricity, for example, in November revenue 648 million, the monthly growth rate of -28.2%. The new century photoelectric November revenue of 100 million (MoM-28.6%), monthly revenue continued record highs also marked off. Since 2008, LED upstream manufacturers a substantial expansion of production capacity, when the boom reversed idle capacity increase, part of the upstream manufacturers capacity utilization has been lower than 5 into the standard, began to be affected due to operating losses.

As for the downstream part of the LED package, November revenue of about 2 billion 501 million (MoM -27.1%, YoY-33.3%), revenue performance is also significantly lower than in the same period in 2007. In order to observe the revenue of individual packaging manufacturers, we can see that the order of almost all applications fell. It is quite a success in the NB backlight field billion light, or a white card on mobile phone market as the main force of the East Bay, Hong Qi, even with special frozen light bar specializing in Huaxing, revenue decline reached 20-30% range.

LEDinside recently inquire about a number of LED Taiwan factory, the industry generally said that although November was entered into the season, but after mid November, almost all application clients are beginning to cut single inventory adjustment greatly, making revenue decline beyond industry originally expected. In particular, the Chinese market, the rapid decline in the industry boom, many of the smaller LED packaging or application vendors have been closed down, the adverse impact on the market situation. In other words, in the case of the distributor, the current handling of accounts receivable is more important than the sale of the product, which also affects the recent shipment.

The LEDinside observation, the current global market there is still part of the demand for LED, but the Lunar New Year is the collapse of small and medium-sized enterprises peak tide, so many LED manufacturers recently began to strictly control credit object and adjust the inventory level. Estimated in the first quarter of 2009, after the elimination of some of the poor quality of the manufacturers, the market transaction order is expected to reply, when the market situation is clear, then orders will begin to gradually return.