LED weak market Osram, Philips, AIXTRON and other companies affected

The entire lighting market downturn is affecting all aspects of the supply chain of enterprises, SIEMENS may postpone OSRAM's initial public offering (Osram) Company (IPO), the same market conditions also affect the entire global LED lighting industry.

OSRAM delayed initial public offering

SIEMENS (SIE), based in Munich, Germany, recently decided to delay its initial public offering in of this year. It is reported that by the solid-state lighting industry slowdown and the impact of the global stock market weakness, OSRAM at this time will not be listed through IPO.

As with the global economy, demand for LED and solid state lighting this year is lower than expected. LED backlight TV oversupply situation led to the decline in the market price of LED. At the same time, the new entrants to the Asian market is also the price of LED components and solid-state lighting pressure. These factors have affected OSRAM's IPO time. However, SIEMENS said in a news report last week that it would not give up the original plan of IPO, but did not specify the time to market, saying it will depend on the stability of the market situation".

PHILPS lighting growth slowed

Industry slowdown not only affects OSRAM. Royal PHILPS electronics company released its 2011 second quarter results on July 18th, from 2011 to 2015 during the compound annual growth in the global lighting market forecast to 5-7%, and released last year is expected to be 7-9%.

President and chief executive officer of Frans van Houten, Royal PHILPS electronics company in July this year, said: "Philips lighting division sales growth of 4% over the same period last year, of which LED business strong growth of 21% this quarter, but overall, lighting performance is not satisfactory".

In September 13th, in an event held in London, UK, Philips executives provided a copy of the company's latest lighting and consumer data. Philips Lighting Department said that due to the decrease in display sales, its Lumileds sales decline. However, its overall sales in the first half of 2011, compared with the same period in 2010, an increase of 24% LED.

AIXTRON released revised 2011 Guide

Last week, the German AIXTRON MOCVD equipment manufacturer SE released a new revenue forecast in 2011, is expected to be $6-6.5 billion in revenue this year, gross margin was 25-30%. Previously, the company expects revenue of 8-9 billion euros, gross margin of 35%.

It is reported that the company has received feedback from several customers, especially Asian customers, asked to postpone the delivery date of the MOCVD system to 2012. AIXTRON pointed out that the vulnerability of the short-term economic recovery has become increasingly concerned, coupled with the rapid decline in the price of the terminal market in LED, resulting in the purchase order to shelve and postpone delivery. September 16th AIXTRON Nasdaq stock price closed at $16.61, its lowest price since 52 weeks, the highest price during the year reached $45 in February.

Instruments's stock rating, Veeco is also a MOCVD device manufacturer, but also a competitor to AIXTRON. As a result, Veeco's shares fell to $30.51 in September 16th, down from $57.67 in May, compared with a high of $47%.

The installation speed EPISTAR slow MOCVD

According to an article published in Digitimes, EPISTAR will start operations in Changzhou China LED joint venture - Epicrystal company in September 23rd. Taiwan EPISTAR owns 60% shares of Epicrystal. The Changzhou factory is one of the three joint venture set up in Chinese, EPISTAR, and first began operations.

The new plant has installed capacity of 60 MOCVD devices, but due to sluggish market and weak demand growth, by the end of this year, the plant will be installed only 10 MOCVD equipment. The Digitimes article shows that due to changes in the government incentive plan, China, LED business has slowed down the procurement of MOCVD equipment, but EPISTAR plans may be directly not affected by these incentives change, because before this, EPISTAR subsidy application has passed.