March 2013 global LED industry market analysis

First, the overseas LED industry trends

According to the statistics of the 9 Taiwan LED chip companies in March achieved operating income of NT $3 billion 767 million, down 9.3% year-on-year, growth of 37.4%; 9 LED package application enterprise 1-2 month operating income of 4 billion 616 million yuan NT, an increase of 23.5%, growth of 33.7%;

In LED backlight and LED lighting demand orders gradually peatlands drive, Taiwan LED packaging companies in March revenue showed rapid growth; while the LED chip business revenue fell, but the crystal electric and canyuan two vendor revenue with the same period last year, in the two quarter has been close to full capacity, the visibility of orders has reached May, EPISTAR has plans for domestic joint venture expansion.

LED lighting products prices close to the sweet spot: March Cree launched a $9.99 6W450lm LED bulb (replacing 40W bulb), compared with the energy-saving lamp 9W (3.99 to 4.99 U.S. dollars) has spread at about 2 times, and in mid 2013 the domestic manufacturers will launch the same level of $6.99 ball bubble lamp we think, the terminal retail price decline will lead to interior LED lighting to enhance the penetration;

MOCVD equipment substantial price cuts: from the beginning of the 2 quarter of 2011 LED upstream expansion began to slow down, the recent top suppliers VEECO and Aixtron will MOCVD equipment prices fell from $1 million 400 thousand to $2 million, a decline of more than 30%;

Two, the domestic LED industry trends

Domestic LED packaging factory in 2012 to enter the domestic supply chain: backlight TV backlight supply chain only REFOND and Dongshan precision, and with the technical quality of domestic packaging enterprises to upgrade, has begun to enter the supply chain of large size TV backlight, LED backlight device allring technology, Jufei, nationstar start volume;

The purchase of domestic chip trend: in addition to the packaging field of domestic enterprises began to erode the share of Taiwan enterprises, leading enterprises to domestic chip purchasing trend is more obvious, according to the feedback of downstream enterprises, in addition to the necessary part for high-end applications of high brightness LED chips of lighting, display or LED backlight, are turning to more cost-effective high domestic enterprises;

In March demand, production capacity close to full load: March backlight demand as well as overseas export orders stable LED lighting makes the downstream packaging enterprises capacity basically maintain full visibility of orders, to May, while the chip leading enterprises have reached full production Sanan optoelectronics;

A quarter of the chip price decline, MO source price stability: the overall decline in 2012 LED chip price is about 20%, in November to enter the off-season after Taiwan manufacturers reduce inventory makes the price fell by about 10%, a quarter of the price drop in the 6%-7% chip, and with the demand, the price decline is expected in the two quarter of the normal range of 3%-5%; upstream raw materials MO source price stability, trimethyl gallium in the price of 11 thousand yuan /kg, is still in the bottom.