The product price competition, LED driven IC factory accumulated gross margin steady spell

Taiwan LED drive IC plant by the industry to reduce the price competition, so that the price of the product price range of two to 30%, affecting the company's gross profit margin, gross profit margin is still up to 34-35% at the beginning of the year to the end of the forecast gross profit margin fell to 30%. The company said that next year will be the process improvement to reduce cost from 0.18um process to 0.13um/0.15um layout; and from 8 inch to 12 inch wafer starts next year, will be gradually adjusted, expected next year gross margin of about 30-32% level. Optimistic about the small spacing market continues to develop, the company continued to increase shipments next year, is expected next year revenue is expected to grow 10% to 12%. IC design for the accumulation of the company, the product is mainly driven by IC LED, the application to display the main screen, other applications include building lighting, TV backlight and general lighting. Revenue accounted for about 90% of the display, LED lighting accounted for about 10%. The company is the world's largest display LED driver IC manufacturers, global market share of more than 50% in the mainland market share of about 70%. In the fourth quarter of the company's traditional business off-season, October revenue of 202 million yuan (NT, the same below), month minus 11.14%, November revenue of 200 million yuan, month minus 0.89%, legal expected December revenue of about 200 million yuan level, estimate the fourth quarter compared with the previous quarter of double-digit quarter cut, and the first Ji Yi next year for the industry off-season. This camp exercise can mainly come from the mainland market of small pitch screen (pitch (pitch) <6mm) pull goods buoyant, but due to intense market competition, the industry price competition, the product bargain rate of two to 30%, affect the company's gross margin, gross margin of 34.91% in the first quarter, the second quarter fell to 32.46% in the third quarter. To 31.47%, the fourth quarter corporate expected gross margin of about only 30% down. In order to improve the performance of the gross margin, the company said, will improve the process to reduce the cost, such as the 0.18um process, next to the 0.13um/0.15um layout; and the company is mainly based on 8 inch wafer starts, is also a test plant 12 inch cast piece, is still in good condition, next year will be gradually adjusted; in addition and actively develop new, expected next year gross margin of about 30-32% level. This year, the company accumulated 1-11 monthly revenues of 2 billion 281 million yuan, an increase of 23.63% in the first half of the cumulative EPS reached $5.01, better than last year's performance of EPS $3.51. The company said that the small screen display products is still one of the focus of the market next year, next year, the overall market volume will expand, is expected to accumulate next year, the relevant product shipments will grow by more than 50%. The company expects revenue next year is expected to grow from 10% to 12%.

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