Epistar Q3 challenges blue LED/quaternary LED production capacity
Although land-owned factories still have new production capacity to be opened, the impact on prices may be delayed until the first half of next year. Jingdian's CSP shipments climbed this quarter, plant lighting received large orders, and small-pitch display applications broke out. Under the support of the quaternary LED utilization rate, the third quarter challenged the blue LED and quaternary LED to be fully loaded.
When Mingjun Zhou, the general manager of Jingdian, attended the Optoelectronics exhibition at the beginning of the year, he predicted that the land-owned factories San'an Optoelectronics, HC Semitek, Aoyang Shunchang, etc. will continue to have new production capacity. Jingdian judges that the production capacity may be launched. In August of this year, I have reservations about the price of blue LEDs after the third quarter; however, as land-funded factories adopt domestic MOCVD equipment, there seems to be a long learning curve, and the production capacity is not going well. The new wave of blue LED production capacity releases. The fear is postponed to the fourth quarter to the first half of next year.
Jingdian pointed out that in order to obtain government subsidies, land-owned factories began to use domestic MOCVD equipment and imported homemade equipment to impact international equipment factories such as VEECO. The current operation is under pressure. Because land-owned plants still need a learning curve, Jingdian judges If the learning curve is fast enough, production capacity may be released after the fourth quarter. The fourth quarter of the LED industry in previous years to the first quarter of the next year is a relatively low season, and the price of blue LEDs in the first half of next year may be under pressure.
However, in the short term, Epistar’s operations have improved. The quality and quantity of orders for blue LEDs and quaternary LEDs have improved significantly in the third quarter.
In the part of blue LED, Epistar pointed out that the demand for TV backlight is relatively weak this year. However, Korean manufacturers have introduced CSP (wafer level packaging) chips in high-end TV models. In addition, the third season is the traditional peak season for TV. CSP shipments of power electronics are expected to reach a peak. It is estimated that monthly shipments per month can increase to 4,000 to 50 million compared to the nearly 20 million units in the same period last year. Such products are resistant to falling and help maintain crystal Electric blue LED gross profit.
As for the quaternary LED part, Epistar stated that ultra-high brightness quaternary LEDs are currently maintained at full load due to the high-end applications of fine-pitch displays. However, high-brightness quaternary LEDs are not able to support due to the looseness of mid-range demand. In addition, Epistar has received an order from Philips in the field of plant lighting. This project purchases Epistar’s 660-wavelength red light chip, with Philips’ self-produced blue light chip, and enters the peak of shipments in the third quarter. This order helps Maintain full load on the quaternary LED production line.
At present, among the blue LEDs of Jingdian, lighting and backlighting account for 60% and 30% respectively. The overall blue light accounts for 70% of the operation, and the quaternary LED accounts for 30%. Judging from the fact that the order is received in the third quarter, The legal person expects Epistar's operations in the third quarter to challenge double-digit growth.
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