Taiwan LED plant revenue review in September: downstream packaging demand

Event

Taiwan LED companies in September revenue of all released, LED sapphire manufacturers Zhaoyuan Ruijie and fast growth to continue for several months, an increase of 44.5% and 179.8%, growth of 1.9% and 5.9% respectively. LED chip manufacturer collective decline, EPISTAR, Lunda chain were down 11.9% and 5.6%, but the year is still maintained 30.6% and 17.6% growth. LED packaging manufacturers billion light, East Bay also continue to grow, including one billion light chain growth of 6.5%, the East Central growth of 0.9%, revenue climbed. LED sapphire industry and packaging to maintain rapid growth, while the chip industry is a gradual adjustment, LED industry boom continues.

Comment:

Taiwan manufacturers in September to adjust the LED chip inventory, downstream packaging demand

This month, Taiwan LED chip manufacturers EPISTAR, Lunda, new century, canyuan comprehensive chain fell, fell 11.9%, 5.6%, 22.1%, 11.7%. A slight decline in the 3 quarter as a whole. The main reason is that LED chip manufacturers downstream lighting customers repeat orders in the second quarter, as well as LED TV backlight into seasonal adjustment. This led to greater pressure on manufacturers inventory, had to reduce orders in the 3 quarter, the release of inventory, while the release of inventory will continue for some time. Short term adjustment is inevitable, but in the long run, strong demand for LED lighting will continue to provide power for the upstream chip industry.

LED sapphire manufacturers revenue rose steadily, and the diamond crystal beauty Xin change in August year-on-year decline trend and, QoQ respectively 5.9% and 37.8%, which confirms our view, Apple Watch as the industry benchmark of sapphire material will cause unrest. In addition, Ruijie fell 12.8%, but the year is still maintain 179.8% growth.

LED downstream packaging economy still, since this year the continued growth of record highs, billion light is growth of 6.5%, the cumulative year-on-year growth of 25.1%, mainly due to the millet, HUAWEI, Lenovo into the intelligent mobile phone factory supply chain, become the important non Apple mobile phone backlight suppliers, open up new markets. As Ye Yinfu, chairman of the light assurance: billion light third quarter earnings will be very good, the fourth quarter is expected to be low season".

Mainland LED lighting rapid expansion, the future lies in the struggle for the industry chain

September, mainland LED showed a significant expansion of the situation. First issued in Jiangsu, accelerate the development of semiconductor lighting industry opinion, followed by the establishment of the province's LED Industry Alliance in Shanxi. Provinces are constantly improving the degree of integration of the industry, improve their own industrial chain structure, through the substrate material - epitaxial wafer - chip - Packaging - Application of all aspects. It is foreseeable that the future of the LED industry competition is not alone, but the whole industry chain. The integration of industry resources, the company and the regional comparative advantage is the future direction of development.

In addition, in September 23rd, LED, the upstream chip leader Sanan optoelectronics for the 2014 Hurun Report, which confirms our previous view: at present LED industry transfer to the mainland trend is clear, and market share continues to first-line enterprises. In fact, we believe that in the economy, the rapid outbreak of the LED lighting market, the most beneficial and future performance can be sustained will also be a leading enterprise. We firmly optimistic about the LED plate throughout the industry.

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