During the second quarter of this year, many panel producers reported profit drop due to oversupply. However, as the third quarter began, AUO has announced its increased revenue for July with panel price bouncing back and rising shipments. 

LED vertical integration manufacturer Lextar Electronics registered a revenue of NT$ 950 million (US$ 31 million) for July, up by 4.3% MoM and down by 15% YoY. The company said it has adjusted its product portfolio by radically reducing the share of general lighting products and targeting customized LED lighting modules and high power LED for special applications.

Lighting companies have released updates about their financial results and reported their outlook for the second half of 2018.

The price of blue LED chips has dropped to almost half compared to the price last year, putting a great pressure on many manufacturers. The price of 4-inch wafer has fallen from US$ 22 in 1Q17 to around US$ 15 in 1Q18. As the cost is about US$ 15, the decrease of price could lead to deficit for LED chip makers.

As one of the most important display shows of the industry, Touch Taiwan will take place during August 29 – 31 in Taipei, Taiwan. Manufacturers of the supply chain including LED chip, panel, driver IC and end-product applications will gather at the event to demonstrate their innovative technologies as well as to discuss the development trend of the industry. Micro LED, considered to be the next generation display technology, will be a spotlight of the event.

In the past few weeks, the LED industry has been active with several worldwide leading brands reporting their financial results of the second quarter and the first half of 2018 as well as big names announcing news of company reconstruction. LEDinside highlights the news for our readers to quickly follow up the industry updates. 

Under the pressure of price competition and oversupply in the LED industry, LED producers worldwide have been devoting their efforts in organization transformation and reconstruction as well as focusing on innovative technologies. The development of Mini LED and Micro LED has been viewed as the new opportunity for LED firms. LEDinside has estimated that the revenue of Micro LED and Mini LED will reach US$1.38 billion by 2022.

Unity Opto, a Taiwan-based LED packaging company, has announced the issuance of up to 120 million shares for private placement as approved by its shareholders to introduce strategic partners. The Taiwanese OEM Wistron, reported its investment in Unity Opto through its subsidiary, ArFlex.

Panel makers in Asia have been struggling with the oversupply of LCD products and have reported profit drop in the second quarter of 2018 compared to last quarter and last year. 

Many LED manufacturers have prepared themselves when entering the peak quarter of a year. Taiwanese LED chip maker Epistar has also reported the increasing demands from the market for four-element LEDs, LED backlights and Mini LED applications. 

Macroblock has showcased several displays adopting its new ICs at 2018 Macroblock LED Display Conference. The company is also ready to welcome the peak quarter of the year with its shipments of various products.

Taiwanese LED chip maker Opto Tech has reported a steady growth of 8% YoY in the second season of 2018 and expects a better performance in the second half of the year with its new capacity completed. 

Samsung Electronics announced its financial result for the second quarter of 2018 at KRW 58.48 trillion (US$ 52.05 billion) with a decrease of 4% YoY. The operating profit was KRW 14.87 trillion (US$ 13.23 billion), up by 6% YoY.

Cities worldwide are preparing themselves to enter the new age of IoT (Internet of Thing) through the installation of smart streetlights and the capital of Taiwan, Taipei is no exception. Taipei city has been working with Everlight, the Taiwanese LED package giant and LED lighting producer, to replace the conventional streetlights with LED smart streetlights and to integrate with different solution providers for constructing a smart city for the future. 

Everlight, the leading Taiwanese LED package company commented on the tariff policy of the U.S. government and considered that there might be impacts on the prices of LED components and LED lighting products.

The U.S. Federal Circuit has reversed a court’s ruling in a patent infringement dispute between Boston University and Epistar, Everlight and Lite-On.

The German semiconductor equipment maker Aixtron has reported its financial results for the second quarter and the first half of 2018 and revealed that its MOCVD systems for laser and red-orange-yellow (ROY) LED applications have created significant contributions to the sales growth. 

Seoul Semiconductor has announced its revenue for the second quarter of 2018 to be KRW 290 billion (US$ 259.84 million), which meets the company’s target of KRW 280 to 300 billion. 

Taiwanese semiconductor equipment supplier Gallant Precision Machining (GPM) reported that the company has prepared for equipment to produce Micro LED, including facilities of LED picking, washing, mass transferring and testing. The facilities are now at the experimental phase.

The Taiwanese backlight module and projector producer Coretronic held the earnings conference call of Q2 on July 24th and claimed that the company’s business has not been influenced by the tariff imposed by the U.S. government.

Taiwanese panel producer AUO has reported its revenue for the second season of 2018 and revealed that the company expects to release Mini LED displays for gaming monitors or gaming notebooks in the second half of 2018.

According to the research of LEDinside, the market scale of LED plant lighting is estimated to grow to US$ 633 million by 2022, with a CAGR of 30% during 2018-2022. Many LED producers have entered the market of horticulture lighting to share the expanding opportunities when the demands in the general lighting market are relatively weak. LEDinside has collected the updates of horticultural applications from LED firms of the world. 

The leading Japanese LED producer, Nichia Corporation released the news that the company decided to expand LED production capacity by building a new plant in response to the increasing demands of lighting and backlight LEDs as well as the applications for automotive use and others.

The tariff imposed on Chinese imported products to the U.S. was effective since July 6th. Previously the U.S. government has announced that the U.S. will enforce 25 percent tariffs on 818 Chinese goods which are in total worth about US$34 billion. And on July 10th, the Trump administration proposed additional tariffs on US$200 billion worth of Chinese goods.

The price competition of blue LED continues and has impacted the revenue of the Taiwanese LED chip maker, Epistar. Facing the challenges, the company plans to expand the production of four-element LED and to increase the proportion of Mini LED products in blue LED.

Taiwanese LED driver IC provider Macroblock has become a supplier of Samsung’s display products and might benefit from Samsung’s mass production of Micro LED displays.

Cree has reported the assignment of the company’s new CFO, Neill Reynold. The appointment will be effective on August 27th 2018. Reynolds will succeed Mike McDevitt at that time, per the transition plan announced in June.

After Apple introduced 3D sensing technology in iPhone X last year, the technology has caught the eye of the market as well as its key component, VCSEL. The suppliers have been boosting the manufacturing of VCSEL since then but as the sale of iPhone X did not meet expectations, the in-stock 3D sensing component also influenced the revenue of suppliers. 

General Electric (GE) announced its plan to restructure the company in November 2017 with the intention to cut off its lighting business and to narrow the focus on three sectors, aviation, power and renewable businesses. 

After showcasing “The Wall” for the first time at CES 2018 in January, Samsung did not stop moving forward with its progress of Micro LED display. The South Korean display giant announced during a press conference that it is ready to mass produce The Wall display for both commercial and home entertainment use.