LEDinside: Revenue of Taiwan LED manufacturers rebounded in March; 2Q Sales is Expected to Continue Upward Trend

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Revenue of Taiwan LED manufacturers rebounded in March; 2Q Sales is Expected to Continue Upward Trend

Based on the statistic of LEDinside, the research division of TrendForce, the revenue of the listed LED manufacturers in March 2011 has reached NTD 9.34 billion (MoM +27.13%, YoY+13.4%). As can be seen from the chip makers’ revenue, the revenue of listed LED chip makers has increased by 23.7%, compared with that of February 2011, and to NTD 4.294 billion (MoM+23.7%; YoY+19.8%). On the other hand, the revenue of listed LED package makers has increased to NTD 5.047 million (MoM+30.2%，YoY+8.4%). Generally speaking, since the second season is the traditionally peak season for the LED industry, and there is an increase in backlight inventory, the revenue has dramatically increased in March. 

Revenues of LED chip makers in March

Upstream Taiwan-based LED chip makers generated an overall revenue of NTD 4.294 billion (MoM+23.7%YoY+19.8%) in March. Taiwan makers such as Epistar, Formosa, Tekcore, Genesis has entered the supply chain for new TV types of Japanese and Korean TV brands and the utilization rate is gradually raised to 100% from 60%~70% between January and February for the upcoming conventional LED peak season. In light of the 2Q outlook, although the 1Q chip price decline may affect chipmakers’ profits, due to the smooth shipment and new consumer electronics product application, it is still expected to see moderate growth and good performance after April. 

Revenues of LED package makers in March

For downstream LED package makers, the overall revenues for March reached NTD 5.047 billon (MoM+30.2%，YoY+8.4%). With substantial shipment of LED backlights, Everlight, Harvatek, Lextar and Bright LED all witnessed a monthly growth rate of over 30%. Bright LED, in particular, grew by more than 60% on monthly base with the supports of street lamp orders from South China and orders from mainland TV brands.

As for LED lighting market development, as LEDtech used to concentrate on low-temperature lighting in the past and has obtained a certain market share and reputation, with its advantageous of tube technologies, it is expanding its business scope into general lighting including office light strips and tubes. It has also shifted market focus to Asia from Europe and the USA. As a result, LEDtech’s monthly growth significantly rose 80% or more. In order to integrate and keep strengthening the competitiveness of each business units, Lite-On was integrated into four SBGs: Power SBG, Optoeletronics SBG (LED optoelectronic products and camera modules), Mechanical Competence SBG (computer cases, keyboards and all-in-one printers), Connected Devices and System Solutions SBG. Among them, Optoelectronics SBG reached 22% monthly growth rate while both camera modules and LED optoelectronic products posted over 10% monthly growth. 

Revenues of LED makers in 1Q

Taiwan’s overall revenue of listed LED makers observed in 1Q summed up approximately NTD 24.78 billion: quarterly revenue of chip makers totaled at NTD 11.53 billion (QoQ-3.6%，YoY+21%) and that of package makers at NTD 13.24 billion (QoQ-1.8%，YoY+11.2%). Due to the down cycle and rapid price slide, overall revenue for 1Q is slightly less than that for 4Q last year.  

However, with the beginning of the 2Q, the demand of LED backlights for the LED TV, Tablet PC and smart phone starts to pick up. LED industry visibility in 2Q is expected to turn clearer than 1Q, which will help boost the overall output value of the industry.