Taiwan-based makers of LED chips, mainly due to an expected drops in demand from the LCD TV sector, will see shipments in the third quarter of 2012 drop or remain unchanged on quarter, while LED packaging houses will see small sequential growth in third-quarter shipments due to demand for LED lighting, according to industry sources.
LED firms have been experiencing high capacity utilization rates in first-half 2012, but many firms continued to suffer losses in the first quarter. With full capacity, upstream LED chipmakers have been showing strong growth in revenues and have been returning to profitability in the second quarter.
Industry sources pointed out that some upstream LED chipmakers only have order visibility clear to August. The market believes TV makers will slow down shipments in second-half 2012.
Comparatively, LED packaging houses will be hit less by the possible downturn as demand for LED lighting continues to heat up. In addition, Taiwan's LED street lamp government projects are likely to happen in the fourth quarter, which will drive industry growth.
