LED Firm Lextar Has Been Developing The LED Lighting Market and Receiving OEM Orders

Taiwan-based LED firm Lextar has been developing the LED lighting market and receiving OEM orders from international firms such as Philips, Osram and Mitsubishi. Lextar has been said to have the intention of buying shares of a traditional distribution channel firm for the Europe and US market. Due to price drop and inventory clearing, the company's third-quarter gross margin fell to 8.9%. Lextar still holds a conservative view for the fourth-quarter performance. The market estimates Lextar to have average gross margin of 10% for 2011. According to Lextar, the revenues from LED lighting will account for 40% of total revenues by the end of 2011. Lextar expects the figure to grow to 50% in 2012 due to incandescent light bulb ban policies taken by various countries and price drops of LED lightings. Lextar noted that Japan continues to be an important market for the firm due to energy conservation needs after the earthquake in March. Shipments of LED lighting to Japan account for 50% of Lextar's total shipments. Europe and the US account for 20% each. Other Asian countries (excluding Japan) currently account for 10% of total shipments. Source: www.digitimes.com