LEDinside: LED Packagers’ Revenues Slid in October as LED Industry Enters Down Cycle

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LED industry research institute indicated that Taiwan listed LED manufactures’ October revenues reached NT$6.974 bn in total, up 0.7% MoM and 23% YoY growth – of which, LED chip makers’ total revenue in October added 7.3% MoM to NT$ 3.151 bn, while LED packagers posted a 7.3% MoM decline to NT$ 3.823 bn.

Based on LEDinside’s observation of recent market dynamics, downstream packagers’ revenue descent resulted from the off season, demand for small- to mid-sized handset backlight dipped as shipments of handset gradually weaken. For mid- and large-sized backlight panels, panel makers have begun to adjust their inventory levels, therefore, downstream packagers’ growth momentum softened. Capacity utilization of upstream (In)GaN LED chipmakers is still fully-loaded, and capacity is expected to expand with the installation of new MOCVD equipment, therefore, revenues in 4Q09 is expected to see persistent growth.

Taiwan chipmakers recorded total revenue of NT$3.151 bn in October, up 7.3% MoM and 37% YoY. Backed by continued installation of MOCVD equipment, LEDinside forecasted sales growth in 4Q09.

Downstream packagers’ total revenue glided to NT$3.823 bn, down 4.2% MoM and up 13.6% YoY. Even though the revenues surpassed that of last year, it has begun to reflect the impact from the slow season. LEDinside projects that the downtrend will continue in November and December, and recovery can only be expected in 1Q10.