LED Chip Factory: gaps in the global LED is still more than two orders into

LED LCD backlight TV 2010, market demand,order is greater than capacity, and capacity tight,
large-size LED backlight applications will become thepart of the customer orders one billion, the last can
main industry growth, however divergent because ofonly meet 50% of the demand.
LED plant to expand capacity, which raised worriesCrystal power, said sales of its current share of
fear will enter production oversupply, Samsung has aabout 20 weeks to 30%, customer concentration is
more outgoing Korean plant Electronicnot high, the impact is limited, because the mainland
(SamsungElectronics) LED faucet factory will cutHome Appliances Manufacturers and the Japanese
single-crystal power, make LED industry gatheringplant is actively expanding the customer objects,
clouds. LED chip industry have said that the currenttogether with chips of technical improvement will
order is still greater than production, a conservativebenefit the average selling price (ASP) to maintain
estimate of at least 2 percent gap orders overand enhance profitability, the 2010 outlook remains
capacity now is only worried about whether it cancautiously optimistic. Industry estimates, crystal
meet the market demand.power carve out 3 per month, revenue growth will
LED chip factory in January 2010 is not the weakresume, or even have the opportunity to challenge a
revenue performance, despite fewer working days inrecord high 1.4 billion.
February, is expected to affect sales performance,Thai Valley Optoelectronics in January sales by 8%
but together with crystal power, Formosa Epitaxyon the Thai Valley said, largely by MOCVD into the
and so the industry continued to intensify during thefactory, the production yield could be improved, as
Chinese New Year rush, 3 On normal working days,MOCVD into the plant commissioning phase will take
together with application of large-size LED backlightabout 3 to 4 months, estimated in March revenue will
and Illumination Demand continues to grow, LEDbegin to grow 4 per month carve out gradually
industry forecast in March to resume revenue growthstabilized, Season 2 is expected to smoothly enter
trend is expected.the track.
Optimistic despite market demand, but supply 2010LED chip industry, said television brand as the
LED chip surface noise constantly, due to concernsspecifications of different customers with special
over expansion of LED plant fear led to imbalance inrequirements and technical barriers, 2010 chip size on
production, while Samsung and other TV brandthe TV backlight is different from the 2009, so new
makers strongly support their own LED subsidiary,entrants into the supply chain difficult to take the
may have been caused by Taiwan-based LEDshort cut, second-line chip plant to meet customer
Factory to replace the crisis, more rumors in recentdemand, is still in sporadic delivery stage, the current
weeks the market could cut single-crystal TV formarket supply gap of at least conservative estimates
fear of causing 15 to 20% revenue decline. However,more than 2 percent, the second half of 2010 and in
the crystal electric directed at rumors that this isshort supply situation will continue.
inconsistent with the facts, stressing the current