LED: packaging industry significantly pick up chip enterprise pressure still exists

Nearly a week, a substantial increase in orders for the company. "The main LED product REFOND dongmi Wang Yuchun told reporters lamented that the LED market is constantly changing, from the overall situation of the three quarter of last year until late February this year, the industry is very bad, but in March was just a week, the industry significantly warmer. The industry is also optimistic about the future trend of the LED industry, the industry is expected in the second half of the performance will be better than the first half.

Packaging industry significantly warmer

Wang Yuchun introduction, in the first half of last year, the light-emitting diode (LED) packaging industry has been developing very well, but to the three quarter of last year, the industry situation worsened, the fourth quarter worse. After the Spring Festival this year, we all feel hopeless. In late February the organic structure research company, said the Taiwan packaging enterprises are getting better, ask the company how did not feel what changes, but by March, the company orders increased significantly, industry rebound significantly. At the same time, the upper reaches of the upper reaches of the LED chip manufacturers big price cuts, the phenomenon of the sale of the stock is not clear, chip prices gradually stabilized, the company did not have to buy a chip bargain. "

Wang Yuchun further said that the company orders to pick up, not only from the needs of LED backlight, but also from the needs of the field of LED lighting. Ruifeng photoelectric situation has a certain industry representative.

An unnamed analyst told reporters that as early as February, the LED industry has emerged to pick up the signal, significantly warmer in March. First of all, the LED chip in Taiwan, packaging manufacturers orders improved capacity utilization rose. Conduction through the region, the mainland LED business trends are gradually improving. Large size backlight display shipments increased significantly enhance the demand for LED related products.

According to the latest news, Taiwan LED manufacturers such as wafer, Everlight, East Bay, canyuan etc. this week and will be released in February operating income. The industry is expected to increase significantly with the panel backlight and LED lighting demand, Taiwan LED plant in February revenues generally rose 10%~20%, and is expected to rise from the month of February up to the third quarter. The canyuan announced in February revenues of NT $320 million yuan (about 68 million 450 thousand yuan), compared with January growth of about 18%. The company said revenue growth was mainly due to the increase in the size of the backlight orders, while the small and medium size parts also rebounded slightly, is expected to LED lighting demand will gradually pick up.

Chip enterprise pressure still exists

Relative to the middle reaches of the packaging industry to pick up, a LED chip listed companies admitted that after experiencing a substantial expansion of the previous two years after birth, the current pressure on the chip business to be slightly larger. "

Listed companies have announced the 2011 Annual report also shows that the LED chip companies at the end of last year, compared with the beginning inventory has increased greatly, such as Sanan Optoelectronics (600703) at the end of 2011 the stock was 919 million yuan, although compared with the three quarter decreased, but still higher than the beginning of the 310 million yuan increased by 195.88%. Micro Bo (600460) at the end of 2011 inventory of $483 million, an increase of 53.91% compared with the beginning.

The analyst said, LED packaging business for the better, is expected to have a stimulating effect on the upstream chip business, but two years ago, chip companies crazy expansion caused by the imbalance between supply and demand based on the industrial structure, he expects the contradiction between supply and demand of this chip links is still difficult to fundamentally change, and that the overall performance is not optimistic about the LED industry upstream.

In addition, the chip listed company said that although the current chip prices gradually bottomed out, but the chip prices is a long-term trend, product gross margin decline will be an inevitable trend. This has been the most direct response in the annual report of listed companies. Silan company led product gross margin was 35.65%, a decrease of 12.41 percentage points. At the same time, due to the decline in gross margin, sales profit rate of an optoelectronic chip decreased by 43.47% year-on-year.

However, the person also said that the chip prices, product price increases, and ultimately will be in exchange for greater market space. At present, the competition of domestic LED chip enterprises is relatively small, especially in the lighting applications, mainly rely on financial input and financial subsidies to engineering lighting based.

Overall, the packaging industry orders significantly warmer, so that LED companies become optimistic about the trend of the industry year. Wang Yuchun expects the second half of the situation should be better than the first half, his views have a lot of industry recognition, the industry is widely expected to benefit from the steady growth of LED backlight and LED lighting demand rebound in demand, the national policy level to promote investment and financial subsidies, the development trend of the industry will be presented before the low high.