LED Market

LED demand put on hold in 2Q; Taiwan players profitability set to pick up in 2H

ivan — Wed, 10 Sep 2008 02:40:52 +0000

Most LED companies, regardless which segment that they are coming from, records a flat 2Q08 performance amid seasonal weakness. A rapid expansion among global LED makers in 1H08 plus a weak demand that is suppressed by a relatively high price premium upon low performance, oversupply was seen, especially when the industry is in lack of a killer application to spur demand. This explains why LED makers mostly have their sales performance fail expectations in 1H08.

LEDinside estimates that operating margin among upstream epi-wafer maker averaged at 9.9% in 2Q08, down from 10.3% in 1Q08 whereas downstream packaging houses' OM averaged at 8.6% in the same period, down from 13.1% in 1Q08. The figures show that both upstream and downstream LED players have seen setback in profitability in 2Q08.

Figure 1. LED makers profitability roundup, 2Q08

Inventory turnover throughout the entire LED industry has improved in 2Q08 though. Upstream players have their inventory turnover reduced from 142 days to 128 days and downstream from 83 days to 75 days.

Figure 2. LED makers inventory turn-over, 2Q08 (day)

Demand of LEDs from handset backlighting and other small- and medium-size applications was still dampened by seasonality downturn. LEDinside estimates global handset shipments totaled at 303mn units in 2Q08, representing a mere 2.7% QoQ growth only. As demand lagged behind aggressive LED expansion, corresponding LED ASP has dropped by 10% accordingly. Some Taiwan LED makers, who have a relatively heavy sales exposure to China white-box handset market, have even seen their sales and profit posted a sharp decline due to a serious illegal handset crackdown in China before the Beijing Olympics.

Demand from LED backlighting at NBs have also postponed in 2Q08. Witsview observed that ASPs for CCFLs that are in use in 12- or above size NB have a sharp price erosion in 2Q08, discouraging panel makers to grow deployment in the LED-backlit NB segment. LED penetration in NB is expected to be 8-10% to overall NB only in 2008, versus the originally expected 10-15%. Demand for LED for use in netbook, on the contrary, grew mildly in the same period. When Intel grows its supply of Atom processor, LED demand from the segment should see a boost. When the price plummets of CCFL gone, it is expected that panel makers will resume their incentive for LED backlighting.

LEDinside observes that demand for branded handsets and white-box handset is warming up as 2H is the traditional seasonality upturn for handset. High-luminance LEDs for use in NB LED backlighting and LED lighting applications should see progressive shipments growth in 2H08, implying that LED makers may see an enhanced product mixture to drive an improved profitability.

Beijing Olympics Give a Boost to Taiwan LED Sales

sarafan — Thu, 04 Sep 2008 03:54:07 +0000

It’s reported that the sales of Taiwan's LED makers rose 16.1 percent in the first half of this year from the same period a year earlier. This is helped by the Beijing Olympics and higher energy prices that are encouraging the use of lower-cost lighting. According to information the companies provided to the Taiwan Stock Exchange, the companies' first-half 2008 sales rose to NT$24.2 billion from NT$20.8 billion in the same period a year earlier, The LED market is expanding, and demand attributable to the Beijing Olympics is boosting sales.

Ivan Lin, an analyst with market researcher LEDinside in Taipei, said "New applications are increasing, LEDs are increasingly used as backlights for notebook computers, in street lights and for factory lighting." According to LEDinside, Taiwan has the world's second largest LED industry with a 20 percent share of the global market, Japan has the world's largest LED industry with a 37 percent share of the world market. LEDinside forecasts that Taiwan will have a 30 percent share of the market by 2010 as many of Taiwan's flat-panel display makers prepare to enter the business.

People are switching to LEDs to save energy and cut electricity bills with these lights, originally familiar to most people as decorations on Christmas trees. LEDs reduce energy consumption by emitting light from a chip rather than an incandescent filament in a light bulb or charged gases in a fluorescent light tube. LEDs use about a tenth of the energy of an incandescent bulb and can last a decade or longer. They also produce almost no heat, thereby reducing fire potential.

Taiwan LED makers have been among the first to enter the high-brightness (HB) segment. HB LEDs are a new generation of lights bright enough for car lights, interior and architectural lighting, projection, flat-panel display backlighting and signage. The organizers of the Beijing Olympics used LEDs to illuminate the stage at the opening ceremony for the games with 44,000 of the lamps in a 147 meter x 36 meter screen at the venue. At least 36,000 LED lamps illuminated the translucent exterior of the gigantic Water Cube where the swimming competitions took place. The Olympics venue also had a gigantic LED screen measuring 30 meters x 200 meters. Opto Tech Corp. of Taiwan supplied LEDs for the screen, according to LEDinside. The Taiwan supplier also won a contract from the Suzhou city government to supply the lamps for a gigantic screen,

Taiwan's government aims to boost the domestic industry by replacing all the island's incandescent-type traffic lights with LED lamps in three years. Traffic signals that use LEDs consume 80-90 percent less energy and generally last 5-7 years, compared to just a year for a comparable incandescent light signal. In 2001, the city of Portland, Oregon replaced nearly all its red and green incandescent traffic signals with new lights using LEDs. The project resulted in annual energy and maintenance savings totaling $400,000 and net payback in less than three years. The Chinese government aims to exploit various green technologies including LED and solar energy to help it reach the goal of trimming 10% of electricity consumption nationwide by 2010.

LEDinside said "despite the downturn in the global economy, Taiwan LED packaging company Ledtech Electronics continues to explore markets for new products, citing industry sources. The company is planning to work with international partners to develop low-cost LED lamps and reading lights for underdeveloped countries, citing market sources."

Harvatek revenues to drop slightly in August

sarafan — Wed, 03 Sep 2008 06:55:31 +0000

Taiwan-based LED packaging company Harvatek estimates its August revenue total will fall a little short of its total in July, but revenues in the third quarter will be better than that it saw in the second quarter, according to market sources.

The breakthrough from ballast technology for LED lighting

sarafan — Wed, 03 Sep 2008 06:44:44 +0000

Recently, PureSpectrum, Inc. has begun testing the viability of its innovative ballast design for use with LED applications with its ongoing efforts to continue development of the company's breakthrough ballast technology,

PureSpectrum has already engineered and introduced breakthrough ballast technology for fluorescent lighting, and during the past several months the company has transitioned from research and development into implementation and is engaged in licensing discussions with multiple manufacturers. However, PureSpectrum president and CEO Lee Vanatta said that PureSpectrum's core business will remain technology and now the company has begun adapting its base technology to be compatible with LED lighting systems.

Vanatta said that the ballast technology in fluorescent lighting was the first and most obvious of many applications, they have been told repeatedly that their approach to ballast circuitry topology is unique within the industry, and they believe their ballast can also provide performance improvements for LED-based lighting devices. By researching the feasibility of interfacing with LED lighting, they expand the scope of marketable applications for their technology and place PureSpectum squarely in the middle of the lighting conversation for the foreseeable future.

PureSpectrum's unprecedented ballast design is separated from commercially available electronic ballasts by its unique circuitry which is constructed to achieve high Power Factor and optimum efficiency without the addition of extra circuits. The cost effective PureSpectrum ballast topology attains ultimate efficiency by maximizing productive energy usage and minimizing components.

LED lamps utilize light emitting diodes to produce light as opposed to electrical filaments in incandescent bulbs or stimulated phosphorous gas in fluorescent bulbs. Solid state lighting creates visible light with reduced heat generation or lost energy dissipation while providing for greater resistance to shock, vibration and wear which significantly increases the expected lifespan of a bulb. Only 15 years ago, LED design advanced to the point where white light could be produced, but earlier this year a company in Wisconsin was able to light both the interior and exterior of a newly built factory almost exclusively with LED bulbs.

LED lighting has been embraced by the green movement for its energy efficient properties and heavily promoted by national and international media for its novelty and rapid development. However, while LED devices are exponentially more energy efficient than even Compact Fluorescent Lamps (CFL), the exorbitantly high per unit cost is still a major obstacle to overcome for both residential and commercial consumer adoption.

However, according to Vanatta, the LED market has almost unlimited growth potential as progressive technology companies like PureSpectrum work diligently toward improving performance and lowering the price tag for LED products. LED Market leader Cree, Inc. earned more than $490 million in revenue in fiscal 2008 and is expected to top $500 million in 2009.

Walsin Lihwa said to be entering LED market

sarafan — Mon, 25 Aug 2008 07:10:25 +0000

Taiwan based electric wire and cable maker Walsin Lihwa is going to join the LED market and placed an order for Aixtron AG MOCVD systems in the second quarter this year, with the systems being delivered this quarter.

The Market for HB-LEDs Lighting to grow to $1.65bn in 2012

sarafan — Thu, 21 Aug 2008 07:31:07 +0000

It’s reported that the market for high-brightness light-emitting diodes (HB-LEDs) in lighting applications grew 64% in 2007 to $337m, up from $205m in 2006. According to related analysis and forecast, the HB-LED lighting market should reach $1.65bn in 2012.

In recent years, HB-LEDs have demonstrated dramatic improvements in performance, as well as significant cost reduction, such that they are undergoing a period of rapid market growth in a variety of niche and general lighting applications.

Most lighting applications continued to use colored LEDs in markets such as architectural lighting, channel letter signs, accent and decorative lighting, and entertainment lighting. However, White LEDs have begun to capture a strong market position in selected applications such as consumer portable lighting and machine vision. In addition, more recently white LEDs have begun to be used on a limited basis in applications such as retail display lighting, commercial and industrial lighting, and outdoor area lighting. white LEDs accounted for 48% of the market in 2007, and this percentage will grow as LEDs achieve greater penetration of the general illumination market.

As LEDs grow beyond single-color and color-changing applications into general illumination applications such as residential, commercial, and off-grid applications, and ultimately into outdoor area applications, it’s forecasted that the LED lighting market should reach $1.65bn in 2012. By then, it will only be the beginning for the ultimate replacement of conventional light sources, including high-efficiency fluorescent and HID lamps. However, many challenges face the LED industry to accomplish that goal.

Chinese suppliers: LED market to grow

Emma — Thu, 08 May 2008 10:06:21 +0000

The market for light-emitting diodes is set to grow significantly throughout the year despite an economic downturn, according to Chinese suppliers.

A survey of LED light fixture suppliers carried out by Global Sources revealed that 81 per cent believed that exports would grow at ten per cent or more over the coming year.

Some 67 per cent even predicted expert sales to be even higher, with expectations reaching 20 per cent or more.

The main driver for the export growth was cited as a growing range of LED-based lighting applications.

"The use of LEDs in functional everyday lighting is moving into the mainstream, especially in developed markets. This, in turn, is fuelling product development, with Greater China manufacturers seeking to gain an edge through improved performance and application flexibility, said report publisher Spenser Au.

The growth in lighting applications was mirrored in development plans, with 59 per cent of suppliers saying they were going to focus on general lighting applications, 22 per cent working on improving optical design, 11 per cent working to develop brighter output and eight per cent who said they were going to focus on decreasing deterioration rates.

Rapid Electronics are a leading UK supplier of electronic components, electrical products and industrial equipment to the Assembly Manufacturer sector.