When you look at today’s smartphones, or phablets and you see that the screens are getting bigger and bigger, do you realize that the display is what is taking up most of the power in the system?  

LED manufacturer Lextar released their fiscal first quarter 2014 financial report on May 12, 2014. The company reported revenue dropped 3 percent QoQ to NT $3.22 billion (US $106.7 million) but up 11.6 percent from 1Q13. Gross margin improved 2.3 percent QoQ to 12.5 percent. Net profit for 1Q14 reached NT $21 million with EPS of NT $0.05. 

Epistar raked in profits in 1Q14, benefitting from strong LED backlight and lighting order demands. The Taiwanese epitaxy manufacturer performed better than first quarter last year, with growth of 44.33 percent YoY. 

Demand for CCFL has been hit hard by LCD TV backlight’s gradual conversion to LEDs. Japanese CCFL manufacturer Sanken Electric’s revenue will drop further this year as demand for CCFL dries up. The company therefore announced on March 25th after hours on the Japanese stock market, that they are ending their CCFL business.

The LED industry is entering into the traditionally slack second quarter. LED manufacturers have increased backlight orders in March as large international TV brand manufacturers launch new products this quarter. In addition to rising demands for LED lighting, LED manufacturer production utilization rates have also seen an increase in March. LED chip manufacturer Epistar and LED package manufacturer Everlight saw a rebound in production utilization this month. Operational performance is also anticipated to increase.

Four major phenomena occurred simultaneously in the sapphire market leading to global supply shortage for patterned sapphire substrate (PSS), according to Chinese-language Economic Daily News.

TV LED backlight penetration rate is saturating as LED backlight product price competition continues. Brand manufacturers are hoping to further drop already low direct-type LED TV prices by introducing flip-chip products. Chinese LED package manufactures, including Refond Optoelectronics, All-Ring Tech, and Lightening Optoelectronics, are hoping to catch up through advancing their technological capabilities.Taiwanese LED package manufactures are currently facing increased pressure from product advancement and competition.   

Taiwanese manufacturer Lextar benefited from  backlight client Chinese Lunar New Year preorders in January, with consolidated revenue of NT $1.22 billion (US $40.3 million), monthly growth of 11 percent. February however only has a utilization rate of around 70 percent due to preorders and fewer working days. Utilization rates are  anticipated to rebound in March, driven by the upcoming peak season for backlight and lighting. Order visibility will remain at one month.

A standard way to configure the backlight is to use two discrete devices: a 100 V MOSFET in a DPAK package and a 100 V Schottky diode, also in a DPAK package. High leakage current of Schottky diode can be a problem in LED backlight units, especially at higher temperatures. Some customers have experienced leakage failure issue of Schottky diode during mass production. One way to improve the leakage failure is to increase the Schottky diode’s voltage rating from 100 V to 120 V, but leakage current can still be an issue when the system temperature is high.

The LED industry main logic is driven by general lighting. Compared to previous waves driven by LED backlight and commercial lighting, general lighting is a market with a real value of more than RMB 100 billion (US$ 16.81 billion). It is estimated by 2014 the global civilian lighting market will reach more than RMB 100 billion for the first time, and reach RMB 160 billion in 2015. Within the next two years, CAGR will reach 60 percent taking the LED industry to its new hot spot.

Taiwan LED packaging manufacturer Advanced Optoelectronic Technology (AOT) after being listed on the Gretai Securities Market on June 25th 2013, on September 25th held a shareholder’s meeting to appoint new chairman to the board. AOT stated that due to the increased demand after the company was listed.

According to LEDinside, the LED research division of TrendForce, the June revenues of Taiwanese listed LED manufacturers totaled NT$8.8 billion (MoM+1.12%, YoY-5.6%). Benefiting from the climbing demand for consumer electronic appliances and the traditional lighting peak season, the LED industry’s 2Q12 revenue reached NT$25.82 billion (QoQ+22.7%). Looking towards the second half of 2012, the LED industry will face a severe challenge – affected by the lukewarm economic outlook and the European debt crisis, the future for end market does not seem b...

Recently, Chien Fu Shieh, the Chairman of LED sapphire substrate manufacturer Tera Xtal(4969), revealed that the company plans to establish crystal-growing and substrate plants in China. The plan will be carried out in 1Q12 at the soonest. Shieh pointed out that LCD TV’s weak demand caused a steep drop in the prices of sapphire ingot and substrate. However, after its August revenue hit a low of NT$ 105 million, Tera Xtal managed to bounce back and increase the revenues in September and October to NT$ 110 million and NT$ 113 million, respectively. Alth...

Lite-On Technology is the most experienced and largest optoelectronics supplier for the semiconductor industry. Since its establishment in 1975, it has been keeping the development and management of LED business, which is regarded as its core business. Lite-On has not only succeeded in enlarging its product scope but also presented remarkable performance in diversified LED application products. LEDinside is honored to have invited Hsiang-Jui Wu, General Manager of Advanced Lighting Solution SBU, Opto SBG, Lite-On Technology to share his experiences and achievements in LED package business of these years. 

Formosa Epitaxy is specialized in LED chip and wafer production, its product lines including blue, green, UV LED chips. Currently, Formosa Expitaxy is not only holding a significant role in the LED backlight market through joint-ventures with the downstream panel makers, but also actively tapping into the lighting market. Recently, it has further forged a strategic partnership with Mitsui&Co., LTD, one of the Japanese largest enterprises, receiving much attention from the LED market and industry. In the increasingly fierce competition in LED industry, Formosa Epitaxy has found out its outlets by means of joint venture and alliance.

  LEDinside: LED Perspective from President & CEO of Everlight, Robert Yeh Taiwan has built a strong LED landscape following the specialization model under the combined efforts of all LED makers. Everlight Electronics, the Taiwan-based leading LED package maker has not only successfully expand its product lines but also make remarkable achievements in the brand management and bidding markets. This is an honor for LEDinside to have invited Robert Yeh, President & CEO of Everlight to talk about the future development and strategies of Everlight.  

According to LEDinside, a research division of TrendForce, sales revenues of public listed LED manufacturers in Taiwan totaled NT$7.347 billion(MoM-9.22%，YoY+18.1%) in February, 2011. Sales revenues of upstream chip manufacturers reached NT$3.471 billion(MoM-7.9%; YoY+23%) in February, 2011, up 23% compared to the same month of 2010. As for Taiwanese downstream LED package manufacturers, suffering from fewer working days in February, sales revenues reached NT$3.876 billion(MoM-10.3%，YoY+14%) , down 9.22% on month, but up 18.1% compared to the same month of 2010.