“LED industry inventory level adjustments hit a peak in July,” a cnYes.com report quoted Epistar Chairman B.J. Lee. Market insiders’ project LED lighting PSS manufacturers Crystalwise Technology, Rigidtech and Aceplux Optotech. The market projects revenues in September and October will be unable to keep up high growth, and the market will be stagnant in third quarter.

LED prices slid in first half of 2014, while the product has become increasingly widespread. PSS luminous efficacy is also much higher now, with 4-inch PSS 40 percent lower than 2-inch PSS. Therefore, the market has been ordering 4-inch PSS products only, which has spurred sapphire PSS revenues monthly growth.

Following third quarter inventory adjustments, Epistar shipments dropped. Since PSS are upstream manufacturers in the epiwafer industry, Epistar is also Crystalwise and Rigidtech’s biggest client, which led to sliding revenue performances from September to October 2014. Rigidtech revenue hit a new record high in August. The current decline is only a temporary supply and demand issue, and will not affect the industry in the long term, said the company earlier. Revenues are expected to rebound in November. Meanwhile, the company continued production expansions ahead of the arriving peak season.

With the PSS market’s lowered outlook, Crystalwise is being pressured to lower revenue. The company board decided to slash the value of new stocks issued by 52 percent from NT $85 to NT $40. The company remains confident about completing the financing.

Crystalwise is upbeat about PSS industry developments in 2015, and planned to raise PSS production lines to 15 by the end of 2014. The company will add another eight production lines this year, but the lowered market estimations and more than halved financing indicates the company will be adding fewer production lines.