Due to the scarcity of electronic components from upper stream, for production capacity entire LED industry has shrunk significantly. Also, many major international LED manufacturers have extended its delivery time to reflect to this emergency. As today, the lead time has been stretched out from 5 weeks to nearly 20 weeks. This bad situation swept the LED industry, which is in rapidly growing stage now. The serious impact does not only affect LED manufacturers, but also for distributors and trading companies who are facing huge financial penalty by postponing delivery schedule. The estimated amount of damage is more than several billions US dollars.

Unbalance of supply/demand chain, LED industry is threatened by structural risk.

According to LED industry professionals, the chaos of electronic components shortage is expending to all relative businesses. The demand of LED is growing in a much faster pace than anyone expected. The entire market is disturbed by some distributors fighting for inventory. Since the end of 2009, the lack of electronic components led to price increase for metal raw material. Today LED industry also shares the panic for lacking of electronic components. Based on the report published by LED professional media, LEDinside, although the capacity of LED manufacturers has been strategically increased, the shortage of blue jewels and other essential components is still enormous. As 2010 Q2, the price of components has doubled, and created a disaster to LED market. According to The Commercial Times, the most popular business newspaper in Taiwan, points out, besides the lack of LED chips, the shortage of electronic components is another critical reason for decreasing production. Furthermore, the demand of LED lighting is exceeds supply significantly. The severe shortage situation may lead to battle-for-product crisis, which create huge indirect impact to LED distributors.

The lead time determines market share.

LEDinside says, the shortage of components is a structure issue. Plus, the current production capacity is beyond its limit. The lack of component surely will continue till end of 2010. Now with long lead times and booming demand, delivery times become the key factor for LED manufacturers to win the market. Under this circumstance, the only LED manufacturer, who has long-term supply chain strategy, can satisfy growing market demand with precious delivery time. After all, the lead time is the key element to overcome this crisis.

Standing for valuable clients, ALT keeps 3 day lead-time at all cost.

Compared to other LED lighting manufacturers with incredible long lead time, Aeon Lighting Technology Inc. (ALT) is still capable of keeping three day lead-time with its stable supplier chain, which has been established for several years. The CEO of ALT, James Liang, says, “In order to assure that the product of ALT has the best quality with the shortest lead time, we have spent a fortune stocking good amount of inventory. While the whole industry suffered the shortage of components and long lead-time, we are committed to ship out every single order within 3 to 14 days!” While price of components skyrocketed, ALT has maintained strategic partnership with suppliers to provide all products, including MR16, BR, Streetlight, and T8 tubes, to all clients, in order to protect our clients’ investment.

Aeon Lighting Technology Inc. has cutting-edge heat dissipation technology directly from partnered industrial server manufacturer, and more than 100 patents and safety certifications. Additionally it is the first LED lighting company to receive recognition from IF Product Design Award.