Spurred by Demand, LED Output Returned to Last Year’s Benchmark

According to the industry research institute LEDinside, in June 2009, Taiwan’s listed LED manufacturers recorded total revenue of NT$565.2 billion a 9.5 percent growth compared to NT$516 billion in May (+4.7 percent YoY). Considering the past experience, the demand for the hot season is likely to extend through September and October.

LED chip makers’ total revenue amounted to NT$2.453 billion, up by 13.9 percent MoM in June; and LED packagers posted NT$3.198 billion in revenue, a 6.4 percent growth MoM.

Based on LEDinside's observation of the market dynamics, current order visibility is at approximately 4 weeks. As for upstream chip makers, Blu-ray chips are still in tight supply. Judging from the rate of production ramp up from upstream manufacturers, Blu-ray chip short supply is not likely to ease until the end of the year. Meanwhile, as downstream LED packagers have entered into the traditionally hot season, demand for conventional cell phone and Smartphone handsets expanded. The introduction of new LED NB models will continue to push up the demand for LED backlighting.

In June, the total revenue of Taiwan’s LED chip makers was up by a whopping 13.9 percent MoM to NT$2.453 billion, (YoY -25.7 percent). As for individual players, spurred by LED TV orders, upstream chip makers such Epistar and FOREPI posted revenues that surpassed the performance level of the same time last year. Epistar's Blu-ray and high-brightness quaternion are currently running at full utilization, while the conventional quaternion utilization is still maintained at around 70 percent.

As a result of the fully-loaded utilization of Blu-ray, revenue growth in June is primarily generated from May’s deferred shipments. FOREPI recorded NT$168 million in revenue, up by 4 percent MoM, with its 27 existing MOCVD utilization close to 100 percent; its June09 revenue paralleled the standard of last year.

Downstream LED packagers posted total sales revenue of NT$3.199 billion (up by 6.6 percent MoM and 7.7 percent YoY). Packaging output has surpassed that of May 2008. Thanks to robust demand from the lighting sector, medium- and large-sized backlight, various packagers such as Edison, Ledtech, Unity Opto and Light House Tech celebrated significant revenue growth.

Leading packager Everlight maintained at NT$908 million; encouraged by the high demand level in the traditionally hot season, its monthly revenue may return to the NT$ 1 billion mark. Edison Opto also posted NT$150 million in revenue, up by 15 percent MoM, and a whopping 60 percent growth compared to the same time last year. The outstanding performance is mainly attributed to increasing LED streetlamp demand, the 1W and 3W high power LED shipments; total revenue hit a record high.

www.ledinside.com