LED packaging factories are optimistic about production capacity
+ + The LED industry has entered the traditional peak season, and orders from upstream chips to downstream packaging plants are currently overflowing with production capacity. Packaging plants including Dongbei and Hongqi are optimistic about their second-quarter performance.
Packaging factory Dongbei announced last week that it will expand production and spend NT$1.23 billion to purchase a factory in the Wugu Industrial Zone, mainly for lighting production lines. Dongbei pointed out that in the future lighting products will be 100% made in Taiwan, and output will be doubled after the factory expansion. As lighting demand grows, Dongbei said that after the third quarter of this year, lighting will account for more than 35% of revenue.
On the other hand, the demand for LED backlight has also entered the peak season. Dongbei said that the May Day stocking rush of Chinese TV brands has started. This year, the size of mainstream models has been enlarged to 40 inches. + In addition, the demand for large-size TVs of 50 inches and above, led by Korean manufacturers, has also doubled, requiring more LEDs. Therefore, with the blessing of lighting and backlight, the second quarter performance is expected to have double-digit growth.
Packaging factory Hongqi said that its production capacity will be exhausted in April, and the situation of full orders will continue throughout the second quarter. If divided by terminal applications, the demand for all product lines from backlight, lighting, to display signage has increased significantly, which is an obvious peak season effect. Hongqi said that although orders are due in June, the price is not good. Fortunately, the current production capacity is fully loaded and high-margin orders can be selected.
Everlight, the profit king of LED and a major packaging and lighting brand, is also optimistic about its performance in the first half of the year.
Chairman Ye Yinfu recently pointed out that as the penetration rate of LED lighting increases and incandescent bulbs are banned in Europe and the United States, lighting demand this year is stronger than expected, and revenue in the second quarter is expected to grow significantly.
ANNA