LED to Be in Short Supply Till 2nd Half of 2010

Supply of LED chips is expected to fall behind demand until the second half of 2010, with prices to trend upward, Robert Yeh, chairman of Everlight Electronics Inc., a leading LED chipmaker in Taiwan, said at the Photronics Festival in Taiwan 2009 which took place last week.

The company has worked out various LED chips for large-sized LED-backlit notebook PCs, effectively pushing up its single-month gross profit rate to a level of over 30% in the second quarter of this year, said Yeh. In light of upcoming strong demand, the firm has doubled its output of SMD (surface mount device) LED ships to 1.2 billion units per month, and is expecting record new highs in its single-month revenues in the second half of the year.

Yeh also pointed out that despite downstream LED chip makers expanding their outputs, supply will likely still fall behind demand until the second half of next year. Recently, downstream LED testing and packaging companies have been plagued by severe shortages of LED chips, causing prices of LED chips to rise.

Optimistic about industrial prosperity in the second half of this year through next year, Yeh stressed that demand from notebook PC, TV and lighting sectors has infused strong growth momentum into the LED industry. Increasing popularity of LED-backlit LCD (liquid crystal display) TVs will also serve as major driving force, he added.

At the show, Everlight unveiled its newest AC LED, which can work without transformers and last for 50,000 hours. The company is scheduled to start shipping the product in the fourth quarter of this year.

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