LED chip prices have fallen sharply, crystal power cut this year by 25%


Taiwan Epistar chairman Li Bingjie news media yesterday (13), said Epistar, American CREE from the second half of last year cut 25%, respectively, in an attempt to stabilize chip prices, but does not follow the land owned factory, still no help improve the supply and demand situation, Epistar estimates after production cuts this year, production will fall by 25%.

Bingjie said that since late last year, has Epistar, Cree is significantly reduced, Cree also simultaneously cut by 25% in the high-power chips in an attempt to stabilize chip prices, despite a sharp reduction already has two plants, but Bingjie I think big Lu Sanan, Wah Chan and other land owned plants are not going to follow up on the situation of excess capacity continued does not help.

Since the production time is at least six months, whether the loss of market share? Bingjie believe that Epistar due to continued production, production this year is estimated to reduce by 25%, but the product mix adjustment, revenue market share to be flat; after the merger Epistar Can yuan, and received various types of orders, profit impact of crystal power to take this time to integrate the plant, production equipment, continue to improve production efficiency.

Last year, LED lighting chip prices fall too far, showing unexpected bounce in March, Li Bingjie noted that the price comparison in March about 10% hike in January, but he believes that prices are not structural factors, judgment is too low due to stock incentive covering stock buying, resulting in higher prices, he believes that overall, the price is just to stabilize it, estimated this year's lED lighting penetration rate will push up the rise to more than 30%, lED lighting is expected to until June monthly heating .

Looking ahead, he believes that cyclical mess, seasonal fluctuation is not obvious, but the company will actively sprint four yuan automotive products, automotive accounted for four yuan this year from last year revenue increased to 9% to 10% 13 to 15%.

Bingjie also said the company recently sued light-Hung, mainly to see in the infrared LED applications, industrial products will be a large number of high-power applications of high-power products, the company saw the market prospects, hope and build patent barrier.

Epistar inventory turnover days in the fourth quarter has fallen to 90 days, compared to 110 to 120 days last year, the third quarter has been significantly reduced, the light inventories of finished goods accounted for 30 days, automotive products are also actively preparing inventories, Lee Bing Jie believes that the current inventory level is normal, inventory impairment loss has been set aside in the fourth quarter of this year, the burden is greatly reduced.