Taiwan LED makers begin to see a silver lining

TAIPEI, TAIWAN: According to survey of the industry research institute LEDinside, Taiwan's listed LED makers recorded total revenue of NT 5.982 billion in July 2009, a 5.8 percent growth from NT 5.652 billion in June 2009 and a 3.8 percent growth YoY.

LED chip makers’ total revenues in July gained 6.9 percent to NT 2.621 billion while LED packagers posted NT 3.361 billion, 5.1 percent growth MoM.Source: LEDInside

Based on LEDinside’s observation of recent market dynamics, capacity utilization of upstream GaN LED chipmakers is virtually fully-loaded, with orders extending through the end of the year. As a result, upstream makers have begun to raise capital for their respective expansion plans as they gear up for next year’s LED TV market.

As for downstream packagers, blessed by Q3 as the traditional hot season, demand for conventional handsets and smart phones is expected to boom, thereby stretching order visibility to the end of September.

Encouraged by the need to meet the power-saving requirements, the introduction of CULV notebooks further drives up the demand for LED backlight. Based on past experience, the momentum for the hot season will extend through September/October.

Under robust demand in TV and NB backlight market, downstream packagers have also initiated their expansion plans.

Taiwan’s chipmakers recorded total revenue of NT2.621 billion in July, a 6.9 percent growth MoM, and 2.6 percent YoY.Source: LEDInside

In individual performance, sales of upstream chipmakers Epistar, FOREPI, Huga Optotech all out-performed their previous records in the same period last year. Leading chipmaker Epistar’s revenues hit a historic high in July with NT 1.208 billion (MoM +5.3 percent).

Although Epistar’s GaN LED chip capacity utilization is fully-loaded, spurred by more efficient chip production and influx of orders for high brightness AllnGaP, its revenue continue to set new records.

Meanwhile FOREPI’s revenue reached 184 million (MoM +10 percent), also a record high level. With continual installation of new equipment by upstream chipmakers, growth of upstream chipmakers’ output will likely extend.

Downstream LED packagers recorded total revenue of NT3,361 billion (MoM +5.1 percent, YoY +4.7 percent) with output already surpassing the standard of the same period last year. Leading LED packager Everlight posted NT 953 million in revenue, another record high figure in this year.

LEDinside expects that in the coming months, with blessing from strong demand during the traditional hot season, Everlight has the potential of returning to the NT 1 billion mark in single month sales.

Unity Opto is another winner; thanks to its long-term investment in the backlight segment, benefiting from backlight demand of mid- and large-sized models, Unity Opto continued to record high revenue of NT 402 million (MoM +18 percent, YoY 70 percent).

Amid rising demand of white-brand handsets, Harvatek, with application in handsets accounting for a large part of the company’s revenue, recorded sales revenue of NT 245 million in July (MoM +12 percent).

With an array of new products, there is still much room for revenue growth in the latter half of 2009. As a result of recent changes in trading models, Light House Tech recorded 163 million in revenue (MoM -26 percent).Source: LEDInside

However, with its continual expansion in the latter half of 2009 and increased system integration ratio, revenue growth momentum will be restored, says LEDinside.

Spurred by demand LED output returns to last year’s benchmark

TAIPEI, TAIWAN: According to the industry research institute LEDinside, in June 2009, Taiwan’s listed LED manufacturers recorded total revenue of NT$565.2 billion a 9.5 percent growth compared to NT$516 billion in May (+4.7 percent YoY). Considering the past experience, the demand for the hot season is likely to extend through September and October.

LED chip makers’ total revenue amounted to NT$2.453 billion, up by 13.9 percent MoM in June; and LED packagers posted NT$3.198 billion in revenue, a 6.4 percent growth MoM.Source: LEDInside

Based on LEDinside's observation of the market dynamics, current order visibility is at approximately four weeks. As for upstream chip makers, Blu-ray chips are still in tight supply. Judging from the rate of production ramp up from upstream manufacturers, Blu-ray chip short supply is not likely to ease until the end of the year.

Meanwhile, as downstream LED packagers have entered into the traditionally hot season, demand for conventional cell phone and Smartphone handsets expanded. The introduction of new LED NB models will continue to push up the demand for LED backlighting

In June, the total revenue of Taiwan’s LED chip makers was up by a whopping 13.9 percent MoM to NT$2.453 billion, (YoY -25.7 percent). As for the individual players, spurred by LED TV orders, upstream chip makers such Epistar and FOREPI posted revenues that surpassed the performance level of the same time last year.

Epistar's Blu-ray and high-brightness quaternion are currently running at full utilization, while the conventional quaternion utilization is still maintained at around 70 percent.

As a result of the fully-loaded utilization of Blu-ray, revenue growth in June is primarily generated from May’s deferred shipments. FOREPI recorded NT$168 million in revenue, up by 4 percent MoM, with its 27 existing MOCVD utilization close to 100%; its June09 revenue paralleled the standard of last year.

Downstream LED packagers posted total sales revenue of NT$3.199 billion (up by 6.6 percent MoM and 7.7 percent YoY). Packaging output has surpassed that of May08. Thanks to robust demand from the lighting sector, medium- and large-sized backlight, various packagers such as Edison, Ledtech, Unity Opto and Light House Tech celebrated significant revenue growth.Source: LEDInside

Leading packager Everlight maintained at NT$908 million; encouraged by the high demand level in the traditionally hot season, its monthly revenue may return to the NT$ 1 billion mark. Edison Opto also posted NT$150 million in revenue, up by 15 percent MoM, and a whopping 60 percent growth compared to the same time last year.

The outstanding performance is mainly attributed to increasing LED streetlamp demand, the 1W and 3W high-power LED shipments; total revenue hit a record high.

Photonics Festival in Taiwan 2009 creates brave new green world

TAIPEI, TAIWAN:Photonics Festival in Taiwan 2009, one of the most prominent photonics exhibition in Asia, will be held during June 10th to 12th 2009 at Taipei World Trade Center Exhibition Hall 1, covering the spectrum of photovoltaic, LED, optics, and other photonic areas.

With about 350 exhibitors and 800 booths filled in Photonics Festival in Taiwan 2009, the visitors are expected to reach 35,000 this year. The show is in conjunction with Display Taiwan 2009 to bring more vitality to the industry.

The theme of this year’s Photonics Festival in Taiwan -- Green Photonics -- features the link between human life and photonic technologies as well as photonic technologies or products that are energy-saving, low-/non-polluting, or able to generate or conserve energy.

The theme is represented through the specially-planned “Advanced Green Photonics Zone,” which includes biophotonics and showcases the related efforts such as photovoltaic cells, fuel cells, and LED from Taiwan academia.

Panel giant AUO will also introduce its LEED (Leadership in Energy and Environmental Design) gold-certified TFT-LCD facility. Other developments such as solar cars, LED fixtures, and the model of the World Games 2009 Kaohsiung’s Main Stadium will also be demonstrated during the three-day show.

Some other featured exhibition areas include “Cross-Strait Photonics Show” and “Taiwan PV Industrial Cluster Zone.” This is the debut of Cross Strait Photonics Show in Photonics Festival in Taiwan.

The organizer PIDA expects the show would serve as a platform for manufacturers from both Taiwan and China to establish connection for future business. On the other hand, Taiwan PV Industrial Cluster Zone which is organized by three major Taiwan science parks will represent Taiwan PV industry in miniature, which is definitely a must-see to know the strength of Taiwan PV industry.

In addition, winners of the 12th Outstanding Photonics Products Award will be displayed in Theme Hall to showcase their innovative design and technological breakthrough.

Key manufacturers in the industry will all attend this photonic event. LED leaders include Nichia, Cree, Dow Corning, Panasonic, Seoul Semiconductor, Optotech, Everlight, Genius Electronic Optical, LiteOn. In solar energy sector, key players of this year’s show include Oerlikon, Nisshinbo, Despatch, Edwards, and Everphoton Energy. Also, buyers and visitors from Spain, China, USA, and Taiwan governmental units will also join the big event this year.

In addition to discussions on technological development and future trend, international conferences and seminars also put stress on “green” issues to echo to the theme this year.

The 2009 Market & Technology Trend Conference accompanying Photonics Festival in Taiwan and Display Taiwan exhibitions features renowned speaker from all around the world. To name a few, for the 5th International Conference in LED Lighting Taiwan 2009, Dr. Robert Steele of Optoelectronics Strategies Unlimited is going to deliver “High Bright LED Market Overview and Forecast,” Matthias Winter from OSRAM Opto Semiconductors will speak on “Light Source Technology for Micro Projection,” and Cree’s Senior Vice President of Worldwide Sales Bob Pollock is going to share with the audience his thoughts on “Convention Fixture Replacements: Is SSL Ready Now?”

On the 3rd International Conference in Solar Taiwan 2009, Huey-Ching Yeh, Director-general of Bureau of Energy, MOEA is going to talk about “The Future Policies of Photovoltaic Systems in Taiwan,” Scheuten Solar’s Chief Executive Officer Frans van den Heuvel will deliver “Building Integration of PV from Solar and Glass,” and Seesun Yeh from DuPont Taiwan Ltd. is going to speak on “DuPont Portfolio of Innovative Materials for Photovoltaic Module.”

Photonics Festival in Taiwan not only shows the strong performance of Taiwan photonics industry, but also provides an ideal promotion platform for global companies. Each year, more and more buyers from overseas have gathered in the exhibition hall to witness the advancement of the Taiwan photonics industry and to seize the business opportunities there.

Therefore, PIDA will continue to fulfill its commitment to provide the best service to the industry, and make Photonics Festival in Taiwan a remarkable event that shines the photonic industry worldwide.