LEDinside: Inventory Replenishment of LED TV Brand Plants Stimulates the Backlight Demand; Revenue of Taiwan LED Makers Bottomed out in January

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According to the analysis and statistics of LEDinside, a research division under TrendForce, the total revenues of listed Taiwan LED manufacturers was up to NTD 8.09 billion in January 2011(MoM-2.04%，YoY+15.9%). Regarding upstream chip manufacturers, these figures reached NTD 3.77 billion in January 2011, (MoM-0.7%; YoY+20.7%). The Chip LEDX moved back at 4,472 points, while Package LEDX rose to 5,001 points, showing a moderate uptrend.

Statistics show that Taiwan manufacturers, such as FOREPI, Tyntek, and Tekcore, start to increase the mid-large size backlight demand along with the launch of new LED TVs, Tablet PCs and smart phones. Under the circumstances of rising demand and replenished orders in LED TV backlight, the revenue has bottomed out in January 2011. The revenue of FOREPI has increased by 16.5%, to NTD 350 million, and the shipment of Tablet PC application is forecasted for further increase in the future.

As for downstream package manufacturers in Taiwan, the listed Taiwan LED manufacturers have gotten the total revenue of NTD 4.32 billion in January 2011, (MoM-3.2%, YoY+12%). Harvatek and Unity put their efforts on the backlight market, while Ledtech focuses on the low temperature lighting market, which contribute to the stabilized increase of order and revenue since November 2010. Regarding lighting market, Edison has built completed channels and turned to emerging market development. Besides, LDMS business model has reduced the commercial cost and offered the all-around customer service system from components to modules, making the revenue increase by 15.9%, to NTD 222 million. Besides, Taiwan manufacturers, including Everlight, ALT, and Genius, have passed CNS 15233 for the streetlight LED products. Currently, many manufacturers are under product inspection, and it is estimated that the installation volume of LED streetlight in Taiwan will become larger in the future, which will increase the overall visibility of the LED streetlight market.

However, the Chinese and Japanese subsidy for both machine equipment and terminal consumer application will be expired. Besides, many uncertain factors will affect the LED industry development in the near future, such as driven development of LED supply and demand, the appreciation of NTD, and fierce talent competition in epitaxy manufacturers in China.