Upstream manufacturers in the terminal market are cautiously optimistic

[Text / high-tech LED reporter]

For LEDs, 2011 is destined to be an extraordinary year. On the one hand, the demand in the terminal market is sluggish, the growth of the LED backlight market is not as good as expected, and the lighting market has not ushered in explosive growth as expected. On the other hand, the planned investment capacity has gradually entered the release cycle, and the warning of overcapacity has been It has become a lingering shadow of domestic upstream epitaxial chip companies.

Even if severe objective factors exist, one phenomenon that must be seen is that the scale of the LED terminal application market itself has not become small, but the speed of market scale amplification is not as fast as everyone expected. As Yan Chunhui, president of Yaweilang Optoelectronics, said, “Everyone thinks that the terminal market will be magnified by 2 times, but it is actually only 1.5 times larger, but maybe everyone hopes that the market will be more than doubled, so the planned expansion capacity is more than 3 times. .

Now more than three times the investment and actually only 1.5 times the demand growth, which creates a situation of oversupply, which takes a while to adjust."

Progressive growth
Tang Guoqing, general manager of Cree China Market, has been emphasizing the current fluctuations in the LED market. “From the perspective of the entire industry, LED development will not be explosive growth, but a gradual growth. ". This can be seen from the fluctuations in the performance of MOCVD equipment manufacturers that control the bottleneck of capacity production in the entire LED industry.

Veeco's revenue for the first quarter of this year was $254.7 million, an increase of 89% over the same period in 2010; revenue for the second quarter was approximately $265 million, an increase of 20% over the same period in 2010; revenue for the third quarter was 268 million The dollar was down 3.3% from the same period in 2010. Obviously, compared with last year, VEECO's revenue performance in the three quarters of this year has increased or decreased, but the magnitude is basically flat.

In contrast, another equipment manufacturer AIXTRON's performance this year is even worse. Total revenue for the first quarter was 205.4 million euros, an increase of 33% over the same period last year; second quarter revenue was 175.6 million euros, a quarterly decrease of 15%; third quarter revenue fell to 89.8 million euros, compared to the previous quarter €175.6 million fell by 49%, down by 8% from €212.7 million in the same period last year. Gross profit margins have also fallen further, from 52% a year ago to 44% in the previous quarter, to 43%.

Huang Junkai, director of global marketing for South Korea's MOCVD manufacturer Jusung Engineering, told Gaogong LED reporters that “the current situation in the MOCVD market is definitely declining”, and the fluctuations in the Chinese market have exclaimed that “it is really a 180-degree change. Because from the beginning of the year to the present The change is very fast. I made some statistics myself. In the first half of this year, almost one week in mainland China, there was a company that said to be an epitaxial chip. However, in the second half of the year, the rhythm was changed. The mainland LED industry once appeared to delay installation. Or the news of the project delaying progress."

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