The total revenue of listed LED manufacturers in Taiwan in December 2010 was approximately 8.261 billion RMB yuan, according to LEDinside, which is a research division of TRENDFORCE. Reviewing the overall LED industry consolidation performance, whether it is an epitaxial plant, or a packaging plant, with the support of companies, governments, and local policies, LED backlighting market development is particularly eye-catching, to the second half of 2010 TV brand factory inventory adjustment, affecting the performance of half of the year. Due to the appreciation of the yen to bring the billing effect only a few manufacturers benefit.
The majority of LED manufacturers' revenue declined due to the impact of inventory at the end of the year. In addition to factors such as exchange losses that depreciated the U.S. dollar, revenues in the fourth quarter declined by 20% to 30% compared with the third quarter.
LEDinside have the opportunity to increase the purchase of LED LCD TVs and tablet PCs during the Chinese Lunar New Year. Especially at CES 2011, various manufacturers have introduced tablets. In addition, under the active promotion of TV brand factories to promote LED LCD TVs and gradually stocking, the demand for LED backlight sources is gradually heating up; the current average retail price of LED LCD TVs has been significantly reduced compared to when it was first launched in the third quarter of 2009. In half, it will help boost the penetration of 2011 LED-backlit TVs.
LED CHIP plant revenue in December affected by the cost of materials, erosion of gross profit. Taiwan's overall upstream chip factory revenue was 3.796 billion yuan, which was 5.7% lower than November revenue, (YoY+23.7%). Due to the demand for LED backlights, many led chip manufacturers began to recover their revenues. The performance in the new century has been growing steadily for over a year and continues to record highs.
LED Epistar, the price of LED chips for Q4 2010 continued to decline by 15-20%, and the prices of sapphire substrates and MO Source are still high-grade, and the erosion of gross profits is greater.
LED Packaging Factory Decreases 0.3% in December, Month Increases 27.8%, Expecting New Applications to Bring Orders. In the downstream LED packaging plant, in December 2010, the overall LED packaging plant revenue reached 4.47 billion yuan (MoM-0.3%, YoY+27.8%). On the whole, under the competition between Japanese and Korean manufacturers, Taiwan's packaging plants have been under pressure in the field of LED-backlit TVs, and the progress has not been as fast as expected.
Observed by LEDinside, many LED package manufacturers are looking forward to other niche application product order effects, such as tablet PCs, pico projectors, or lighting applications, which have successively become star products in 2011 and are expected to increase LED demand.
