The global financial tsunami, demand for consumer electronics market nosedive followed, LED industry could not escape the impact of weak demand, the traditional peak season and had to end early, and because the capacity utilization is low, the upstream industry decline substantially over the downstream plant, which As announced in October sales, ahead of second-line packaging plant is also facing declining orders and revenue constraints, how to stabilize the full-year profit has become the greatest test of LED plant.
    Expand the application of blue LED from a mainstream product, LED energy-saving environmental protection industry to catch the trend, is the industry's arch as the stars of tomorrow's potential industry, but easier to enter the LED industry, money is a major problem, in 2008 to encounter many challenge. The largest proportion of revenues over the last station plant products for mobile applications, but with the global market becomes saturated, the mainland government to suppress white mobile phone, phone orders become more depressed, while the scenery of the moment in 2007 small and medium size panel backlighting also accidents from red turns black and the economy suffered significant bargain than expected and was defeated.
    However, LED NB slow start, and the proportion of lighting products is still low, in 2008 mobile phone and other small size of portable products market share as high as 36%, as the main sales market, even though overall LED industry slowdown, but the downstream packaging products factory application of multiple, flexible price adjustment, application of high brightness LED market growth, value and profit in 2008 is still better than the upper reaches of the grain plant. According to statistics, expand the application of high brightness LED products, and packaging capacity expansion, the annual output growth of 14%, about 50.7 billion Taiwan dollars, so a downturn, and the packaging plants to sustain an average growth of 14% or more , already considered to produce a passing report card.
    The situation of grain plants more difficult, LED crystal grain plant leading power in 2007, 3 in 1 generous completed acquisitions, only a brief order to maintain the market price, in 2008 with the purchase of new entrants strong Tim Taiwan, grain substantial expansion of production capacity, product price returned to the Warring States Period. It is reported that in 2008 the design of upstream capacity to add up to 40%, but the unit price sharp decline in output growth of 8% only slightly, reaching 29.8 billion yuan. Although the industry feel the lack of market growth force, successively suspended the progress of the introduction of new machine, but capacity utilization remained poor circumstances, in 2008 the average gross margin probably will test a low, and even extending into 2009.
    LED difficult market conditions from the 3rd quarter and the October sales performance can be at a glance, the traditional peak season for the past 3 quarters LED industry is a golden opportunity to gain revenue sprint, but the upper reaches of epitaxial LED manufacturers in 2008 but there have been rare in the interest rate for 3 signs of fall quarter profit decline rate than the market expected, no busy season preview atmosphere LED industry in 2008 to early winter.
    Effect of the last off-season starting from November show, but in October there on the LED industry markedly lower sync the slide, according to statistics, in October a total of LED manufacturers revenues 5.847 billion yuan, while the 6.005 billion yuan more in September fell slightly, But the decline compared to the same period in 2007, 11%, the level of performance than the traditional peak season, in which grain plant of 17% annual decline, packaging plants also appeared tired, the annual decline of 7%.
    Global consumer demand shrinking, LED industry, the coming winter, 1st quarter of 2009, fear is still hard to turn from the bottom, with industry estimates, the market returned to the temperature and time have to wait for Season 2, but an oversupply of capacity the problem difficult to interpret changes in consumer products Fast, LED market will move toward the mainstream product mix to reshuffle the cards, LED industry in addition to increased foundry, low-priced orders outside the traditional response of the Road to seek niche markets, a sound financial structure in order to enhance their competitiveness in the doldrums, to meet the spring Yang.
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