LEDinside: Taiwan LED Makers Begin to See a Silver Lining

According to survey of the industry research institute LEDinside, Taiwan's listed LED makers recorded total revenue of NT 5.982 billion in July 2009, a 5.8 percent growth from NT 5.652 billion in June 2009 and a 3.8 percent growth YoY. LED chip makers’ total revenues in July gained 6.9 percent to NT 2.621 billion while LED packagers posted NT 3.361 billion, 5.1 percent growth MoM.

Based on LEDinside’s observation of recent market dynamics, capacity utilization of upstream GaN LED chipmakers is virtually fully-loaded, with orders extending through the end of the year. As a result, upstream makers have begun to raise capital for their respective expansion plans as they gear up for next year’s LED TV market.

As for downstream packagers, blessed by Q3 as the traditional hot season, demand for conventional handsets and smart phones is expected to boom, thereby stretching order visibility to the end of September. Encouraged by the need to meet the power-saving requirements, the introduction of CULV notebooks further drives up the demand for LED backlight. Based on past experience, the momentum for the hot season will extend through September/October. Under robust demand in TV and NB backlight market, downstream packagers have also initiated their expansion plans.

Taiwan’s chipmakers recorded total revenue of NT2.621 billion in July, a 6.9 percent growth MoM, and 2.6 percent YoY. In individual performance, sales of upstream chipmakers Epistar, FOREPI, Huga Optotech all out-performed their previous records in the same period last year. Leading chipmaker Epistar’s revenues hit a historic high in July with NT 1.208 billion (MoM +5.3 percent).

Although Epistar’s GaN LED chip capacity utilization is fully-loaded, spurred by more efficient chip production and influx of orders for high brightness AllnGaP, its revenue continue to set new records. Meanwhile FOREPI’s revenue reached 184 million (MoM +10 percent), also a record high level. With continual installation of new equipment by upstream chipmakers, growth of upstream chipmakers’ output will likely extend.

Downstream LED packagers recorded total revenue of NT3,361 billion (MoM +5.1 percent, YoY +4.7 percent) with output already surpassing the standard of the same period last year. Leading LED packager Everlight posted NT 953 million in revenue, another record high figure in this year. LEDinside expects that in the coming months, with blessing from strong demand during the traditional hot season, Everlight has the potential of returning to the NT 1 billion mark in single month sales. Unity Opto is another winner; thanks to its long term investment in the backlight segment, benefiting from backlight demand of mid and large-sized models, Unity Opto continued to record high revenue of NT 402 million (MoM +18 percent, YoY 70 percent).

Amid rising demand of white-brand handsets, Harvatek, with application in handsets accounting for a large part of the company’s revenue, recorded sales revenue of NT 245 million in July (MoM +12 percent). With an array of new products, there is still much room for revenue growth in the latter half of 2009. As a result of recent changes in trading models, Light House Tech recorded 163 million in revenue (MoM -26 percent).

However, with its continual expansion in the latter half of 2009 and increased system integration ratio, revenue growth momentum will be restored. Says LEDinside.

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