2015-09-01

Chinese LED Manufacturers Call for Economics of Scale War Amid Shrinking Gross Margins

Twenty three LED manufacturers have released their financial results as of Aug. 25, 2015. A lot of analysis has been done to understand net profit and sales revenue. LEDinside focus on the most discussed “price war” and have organized related data to make it easier to understand by observing changes in companies’ gross margins.
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2013-10-04

Rising Lighting Demands Triggers Chinese LED Manufacturers Surging Utilization Rates

In 1H13, listed Chinese LED manufacturers’ total revenue increased at a Year Over Year (YOY) rate of 24.26% to US$ 629.62 million, while LED chip manufacturers’ revenue reached US$ 274.01 million. LED package manufacturers listed on the Chinese bourse also saw their revenue increase to US$ 355.61 million. Although, chip prices plunged in 1H13, overall sales increased at a YOY rate of 15.42%, companies have implemented low pricing strategies as manufacturers expanded production capacity. Taking into consideration factors including the timing of the production capacity expansion and chip performance, there were huge differences in chip manufacturers’ revenues. Affected by the LED lighting market demand, China’s major chip manufacturers’ production utilization rate reached a historical high, with San’an Optoelectronics and Elec-tech International (ETI) utilization rates at 87% and 59% respectively. Package manufacturers, especially in backlight field had the highest profits as they benefited from unexpected volume increases for lighting applications during 1H13 and an increasingly domestic backlight module supply chain.
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