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Optoelectronics/Displays??

LED chip revenue down 6% in June

Posted: 19 Jul 2011 ?? ?Print Version ?Bookmark and Share

Keywords:LED? TV backlight? market demand?

LED companies posted lower revenues for the month of June this year because of weak backlight demand, according to LEDinside, the LED research arm of TrendForce Corp. The earnings of LED chips dropped by 6.1 percent Y-o-Y to about $150 million (NTD 4.34 billion) and decreased 6.2 percent M-o-M.

The earnings of LED package manufacturers steeply fell by 14.8 percent Y-o-Y to about $170 million (NTD 4.89 billion) and declined 6.1 percent M-o-M. Overall, the total monthly revenue of LED firms in Taiwan was roughly $323 million (NTD 9.23 billion), an M-o-M of -6.17 percent and Y-o-Y of -10.9 percent.

Promising LED market
The Photonics Industry and Technology Development Association (PIDA) in Taiwan has forecasted that the Taiwan LED industry will surge to $6.8 billion by 2012. Read the article here.

LED manufacturers' production capacity has decreased 50 percent, and shifted MOCVD equipment from production development to R&D development. Although LED backlight market performance is less than expected, it is still the main development area for LED manufacturers. Particularly, Lextar Electronics Corp. benefited from ODM/OEM orders from international lighting companies with 30 percent of the revenue coming from LED lighting products. Japan imports more than half of the company's lighting products and order backlogs are lined up until end of August, foreseeing a remarkable Q3 sales performance.

LED manufacturers revenue ranking

LED monthly sales revenue

Lite-On Technology Corp. also profited from increasing orders of invisible light and backlight products. The sales of Lite-On set a record high and reached about $46 million (NTD 1.32 billion) with an M-o-M of 3.1 percent and Y-o-Y of 23.5percent. Due to the weak demand in the backlight market, most Taiwan package manufacturers' performance sharply dropped and their business strategy shifted to focus on increasing lighting products in 2H11. Furthermore, Unity Opto Technology Co. Ltd's plant in Beijing is estimated to open early 2012 and is projected to conveniently offer LED backlight products to the northern Chinese market. Additionally, weak TV sales drove Korean LED manufacturers to postpone expansion plans. This raised inventory levels and led to severe price cuts that manufacturers even sold their LED products at low price, intensifying the competitive pressure on the lighting market.


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