Components | September 15, 2011
Chinese LED makers to cut production and downsize
The revenues of listed Taiwanese LED manufacturers amounted to NTD 8.415 billion (MoM-2.69%, YoY-18.9%) in Aug’11. Due to both end market underperformance and steep drop in the LED price, the demand side has been striving to lower the component inventory levels.
However, the impending demand surge triggered by Christmas holiday and the new models of LED backlit TVs will most likely cause the rush-order effect for the backlight market, providing a timely and welcomed break for LED manufacturers. LEDinside indicates that the oversupply will continue to hover around the LED industry in the next few years. In light of the unfavorable market outlook, Chinese LED chip makers have put their expansion plans on hold – a number of manufacturers have delayed production plan, postponed MOCVD installation plan and even considered exiting the market. Therefore, LEDinside estimated the number of new MOCVD equipment installed in China in 2011 at less than 400 units, which is expected to have a positive impact on LED price in 2012. Moreover, as the competition in the LED industry intensifies, Taiwanese manufacturers’ fast responses to the changing economic climate give them a better chance of making inroads into the global LED industry. Chip Makers' Revenue Performance LED makers faced the pressure of readjusting the percentages of their backlight and lighting products in 2Q11. Although large-sized backlight remained the LED chip makers’ target market, the inventory pressure and weak demand in the end market, LED chip makers continue to experience revenue challenges. In August 2011, listed Taiwanese LED chip makers totaled NTD 3.72 billion (MoM-5.9%, YoY-23.9%). However, Formosa Epitaxy Inc. managed to deliver a decent revenue of NTD 380 million with a 14.6% MoM increase, which mostly attributed to the lowered base period value caused by decreased orders from South Korea in 1H11 and the revenue rebound after August. LED makers stated that they started receiving rush orders for tablet and mobile device backlights in September; certain panel manufacturers’ new LED TVs have not only propelled demand but also revived the industry. At the moment, Chinese LED chip makers are drastically adjusting their MOCVD purchase plans and re-distributing its capacities. These moves are a reaction to LED market’s oversupply, Chinese government’s subsidy decrease, the cost of MO source surpassing its actual revenue, and the shortage of Taiwanese LED engineers. Facing such an economic downturn, major Chinese LED makers, such as Sanan Optoelectronics, Elec-Tech International and GCL-Poly Energy Holdings, became conservative about their expansion plans and plan to install less MOCVD equipment than planned. Hence, LEDinside predicts that under 400 sets of new MOCVD equipment will be installed in China in 2011, which is good news as far as the LED price trend in 2012 is concerned. Package manufacturers' revenue performance In regards to revenues of Taiwanese LED package manufacturers, dampened by the weak backlight market demand and drop in LED chip price, the Aug’11 revenues of listed Taiwanese LED package manufacturers totaled to NTD 4.69 billion, a sharp decline of 14.5% compared to the same time last year and 0.01% when compared to July 2011. However, Lextar’s LED package revenue, which has made its way into the lighting market, reached NTD 876 million, which is a 16.5% growth from July’11. Lextar’s growth momentum can be mainly attributed to lighting products, which is 40% of its total revenue. Lextar began receiving orders for large LED lighting projects at the beginning of 2011. At present, LED tubes account for majority of its shipment, averaging 200-300 thousand tubes per month. Moreover, GX16 tube launched in 2Q11, which conformed to the JEL801 standard, has seen considerable shipment growth as well. From a general perspective, the LED lighting market has been demonstrating steady growth, even though the pace has fell short of the industry's expectations. Traditional lighting manufacturers benefiting from the OEM orders from Japan indicated that, aside from GX16 light tubes, R17D light tubs also made a big impact in the Japanese market. According to LEDinside, May to August is the peak season for commercial lighting, and October to December for residential lighting. If the Japanese government reinstitutes the Eco-Point policy in 2H11, LED is expected to see a significant growth in the residential lighting market.
Nobuo Hayasaka takes the helm as President and CEO at Kioxia Kioxia Holdings Corporation has appointed Nobuo Hayasaka as President and CEO of Kioxia, effective immediately. Dr. Hayasaka has served as Acting President and CEO since July 12, 2019, during Former President and CEO Yasuo Naruke’s medical leave of absence.
Cooperation between Elmos and Fraunhofer Institute IMS comes to an end The cooperation between Elmos Semiconductor AG and Fraunhofer Institute for Microelectronic Circuits and Systems (IMS) in Duisburg will end on June 30, 2020 in accordance with the agreed contract period, despite Elmos wishes to continue.
Exxelia picks up Micropen Technologies Exxelia, a Paris-headquartered designer and manufacturer of high-rel passive components and sub-systems for extreme environments announced the completion of its late-2019 acquisition of Micropen Technologies Corporation.
Calif-based Pixelworks broadens footprint in China Video and display processing solutions provider Pixelworks Inc. has opened a new engineering center in Shenzen, China.
Jenoptik to acquire 100% of Spanish company Jenoptik is strengthening its position as a full-service provider of automated manufacturing solutions via the acquisition of Spanish company INTEROB. The contract was signed on January 25th and is expected to close in the coming weeks. The purchase price was slightly less than twice the revenue in 2019.
Broadcom to supply wireless components to Apple Certain subsidiaries of Broadcom have entered into two separate multi-year statement of work agreements with Apple Inc.
TowerJazz, Cadence, and KPI to open analog design lab TowerJazz, Igor Sikorsky Kyiv Polytechnic Institute (KPI), the national technical university of Ukraine, and Cadence Design Systems, are collaborating to open a new analog circuit design lab in Ukraine.
STMicro CEO: ‘We closed 2019 with a solid fourth quarter’ The semiconductor manufacturer reported 2019 fourth quarter new revenues of USD 2.75 billion, gross margin of 39.3%, operating margin of 16.7% and new income of USD 392 million.
Car supplier Harman plans to close German site The automotive supplier Harman apparently wants to stick to its plans and close the plant in Straubing (Germany). Between 625 and 700 jobs are affected.
Camtek receives orders for 34 systems from five manufacturers Camtek says it has received orders for 34 systems for 2D inspection of CMOS image sensors from five different manufacturers, of which 25 are from two customers.
Changes to Next Biometrics' management Next Biometrics' CFO, Knut Stålen, will step down from his position on the last day of February 2020. Knut Stålen has been with NEXT Biometrics since 2014.
Foxconn and Heraeus sign MoU Foxconn Technology Group and Heraeus have signed a Memorandum of Understanding for a strategic cooperation within the space of 5G.
BAE to pick up Collins Aerospace’s GPS business and Raytheon’s ATR business BAE Systems has reached definitive agreements for the proposed acquisitions of Collins Aerospace’s military Global Positioning System (GPS) business and Raytheon’s Airborne Tactical Radios (ATR) business.
JEOL Ltd. acquires Integrated Dynamic Electron Solutions JEOL Ltd. , manufacturer of semiconductor equipment and other industrial instruments and equipment, announced the acquisition of Integrated Dynamic Electron Solutions Inc. (IDES), an entrepreneurial venture specializing in technologies related to transmission electron microscopy (TEM).
NEXT receives major order for Indian government program NEXT Biometrics has received an order for UIDAI and STQC certified fingerprint biometric readers in India with a value of USD 750,000.
Cadence completes acquisition of AWR from NI Cadence Design Systems, Inc. has completed the acquisition of AWR Corporation from National Instruments Corporation.
Fiat Chrysler and Foxconn plans EV joint venture A new competitor in the industry for electric vehicles are in the making.
Collins Aerospace inks multimillion-dollar space contract Collins Aerospace Systems has signed a contract with Lockheed Martin to provide critical subsystems to support production of NASA’s Orion spacecraft fleet for Artemis missions III through VIII.
Imagination Technologies expands with new European design centre Imagination Technologies has opened a new design centre in Timisoara, Romania. The centre will focus on IP designed for artificial intelligence (AI) and computer vision.
AKI Electronic becomes Schurter Electronics As part of the further integration into the Schurter Group, AKI Electronic spol. s r.o. changes its name to SCHURTER Electronics spol. s r.o.
From Bosch to Silicon Mobility - Kallenbach takes the helm Automotive semiconductor company, Silicon Mobility, has appointed former Robert Bosch GmbH executive Rainer Kallenbach as CEO of the company as of January 6, 2020. The current CEO Bruno Paucard will remain with the company as COO and on the Board of Directors.
NEXT Biometrics reorganises - reduces headcount NEXT Biometrics says it is executing a program to optimise the organisation and cost base with its strategic priorities and market opportunities; which also translates to layoffs
LPKF delivers laser system to semiconductor industry customer In December, LPKF delivered – for the first time – a highly automated version of its LIDE system for integration into a semiconductor fab to an unnamed semiconductor manufacturers.
ROHM company SiCrystal & STMicro ink wafer supply deal ROHM and STMicroelectronics have signed a multi-year silicon carbide (SiC) wafers supply agreement with SiCrystal, a ROHM group company having a top share of SiC wafers in Europe.Load more news