LED industry encountered a turning point in the market

The growth rate of mobile phones, PCs and other products seems to have suddenly slowed down. This trend will affect chip manufacturers. Now, the hot market LED has slowed down.

Based on the results announced by Cree this week, analysts are worried about the LED industry. "Cree suggests that general lighting demand is still strong and channel inventory is in good condition. However, the weakening demand for LED TVs and the seasonal factors in Europe are affecting. The industry's September quarter growth prospects, said Hans Mosesmann, an analyst at Raymond James & Associates.

"The current problem is that the LED's display' market suddenly decelerates - lasts for a quarter or several quarters. More importantly, is Cree's general lighting market for LED sales not affected by the weak performance of the display market? Our view is that China subsidizes the production of LED equipment and South Korea's Samsung is able to become self-sufficient in producing LED TVs. The display market will face oversupply problems for several consecutive quarters, he said.

“In the general lighting market, we also believe that these markets have significantly different design trends from those used in the display market. However, considering that we believe Cree’s sales in Asia (excluding Japan) may account for more than 60%, we believe that LED supply The excess outlook will weigh on Cree's general lighting LED market,” he added.

Cree, an LED device and product specialist, announced this week that its fiscal fourth-quarter fiscal fourth-quarter operating income reached US$264.6 million, a record high, which was a 79% increase from the fourth quarter of the previous year and an increase of 13% from the third quarter of this year. %. Its fourth quarter ended on June 27, 2010.

G calculated according to the general accounting principles. Fourth-quarter net income increased by 445% year-on-year to $52.8 million, and diluted earnings per share was $0.48. The fourth quarter of fiscal year 2009 was $9.7 million and $0.11, respectively.

Cree announced that its fiscal year 2010 operating income was US$867.3 million, an increase of 53% from US$567.3 million in the same period of the previous year. Net income from GAAP was US$152.3 million, and diluted earnings per share was US$1.45 in fiscal year 2009. They were $30.3 million and $0.34 respectively.

"FY 2010 was an extraordinary year for Cree and the LED lighting revolution," Cree chairman and chief executive officer Chuck Swoboda said in a statement.

In the first quarter of fiscal year 2011, ending September 26, 2010, Cree plans to achieve revenue of $2.7-2.8 billion, GAAP net income of $52 million-56 million, or diluted earnings per share of $0.48-0.51. .

LED market growth rate is slowing down. Taiwan ODM manufacturers still have weak sales and inventory problems, reflecting the overall IC market conditions.

On August 10th, a Wall Street analyst lowered its estimate of Intel's 2010 revenue and profitability, saying that the situation in the Taiwan PC supply chain shows that orders from the PC terminal market have deteriorated sharply in the second half of July.

According to a preliminary analysis by an analyst from Wall Street on the second quarter inventory, compared with the first quarter, the total IC supply chain inventories increased by 10% in the second quarter, causing concern that the semiconductor gross profit margin will face downward pressure and future operating income will It will slide.