GLII: Taiwan's LED chip market reaches 9.2 billion yuan

In 2012, the price of LED chips continued to decline, and the demand for LED lighting has not increased. As a result, the revenue and profit of LED chip manufacturers in Taiwan have all regressed.

The High-Tech LED Industry Research Institute (GLII) estimates that the output value of LED chips in Taiwan in 2012 is about 9.2 billion yuan (unit: RMB, the same below), down 9.8% from last year. At the same time, due to the rapid growth of Korean LED chip manufacturers in the mainland, in 2013, LED chip manufacturers in Taiwan still face severe market tests.

Market size of 9.2 billion yuan

At present, there are about 20 LED chip manufacturers in Taiwan, 10 of which are listed companies. As of the end of November 2012, 8 of the 10 LED chip makers this year saw a decline in revenue last year. Among them, Taigu's revenue among the 10 chip manufacturers fell the most, down 41.1% year-on-year. Leading enterprise Jingyuan Optoelectronics' revenue decreased by 0.3% year-on-year, the smallest among the eight manufacturers. In terms of growth, only the two companies, Yuanyuan and Guangxu, saw growth year-on-year, with an increase of 12.8% and 10.5% respectively.

Overall, the total revenue of 10 LED chip manufacturers in Taiwan in the first 11 months of this year was about 7.765 billion yuan, down 8.4% year-on-year.

In terms of investment in the mainland, there are already manufacturers such as Jingyuan, Yuyuan, New Century, Huashang, Huaxin United, Longda, Dingyuan, and Jingfa. Among them, the manufacturers that have already run MOCVD machines include Jingyuan, Yuyuan, Longda and Huashang.

The High-Tech LED Industry Research Institute (GLII) estimates that the output value of LED chips in Taiwan will be about 9.2 billion yuan in 2012, a decrease of 9.8% from last year. The main reason is that the price of LED chips dropped sharply in 2012, which led to the increase in the number of LED chip manufacturers.

Operating conditions have not improved

In the case of continued decline in product prices and the lack of LED lighting demand, the LED industry in Taiwan continued to suffer in 2012. Despite the hard work of LED chip makers, the operating conditions have not improved.

In the case of Jingyuan Optoelectronics, the total revenue from January to November 2012 was basically the same as last year. However, it was dragged down by the continued loss of Guangcai Optoelectronics invested, and it is difficult to achieve profitability in 2012. The loss of the LED chip maker Taigu Optoelectronics, which is invested by Everlight Electronics and Jingyuan Optoelectronics, is the most serious. The data shows that the company lost RMB 102 million in the first three quarters of 2012.

In terms of Yuguang Optoelectronics, total revenue in January-November 2012 increased by 12.8% year-on-year, but it is still at a loss. As of the first three quarters of 2012, Yanyuan Optoelectronics had a cumulative loss of RMB 36 million, which was inconsistent with the inconsistent revenue and profit pace.

In the new century, the total revenue from January to November 2012 was 711 million yuan, down 21.5% year-on-year. As of the first three quarters of 2012, the new century photovoltaics accumulated losses of 90 million yuan.

Overall, among the 10 listed companies, only two companies, Guangsheng and Guanglei, achieved profitability in 2012.