New application expands 2010 LED factory spending to record high

Benefiting from the growth of LED application market, LED industry actively expanded production capacity in 2010, and capital expenditures also increased significantly. The LED packaging factory leader Yiguang plans to spend NT$3.7 billion in 2010, compared with an average of RMB2 billion in previous years. The annual growth rate is 85%. In addition, Dongbei recently led the growth of TV backlight demand, and the revenue also increased. In 2010, capital expenditure is expected to exceed 700 million yuan, a growth rate of 1 time.
Due to the global financial tsunami shock at the end of 2008, the LED industry's capital outflow plan was frozen in the coming year due to the downturn of the economy. It was not lifted until the beginning of 2009, but in the first half of 2009, the utilization rate of popular LED products was only 7 to 80%. Overall, the LED industry capital expenditures in 2009 were more conservative than in previous years.
However, optimistic about the growth potential of LED TV in 2010, the LED industry in the second half of 2009 launched a large-scale expansion plan, especially the upstream die factory is the most active, taking MOCVD machine expansion as an example, in 2009, MOCVD machines increased by about 260 units. However, in 2010, 434 units will be added, including Taiwan, South Korea and the mainland, all of which will accelerate production expansion. It is estimated that the monthly production capacity of LED chips will increase by about 50% from the end of 2009.
In addition to the expansion of upstream LED chips, downstream packaging companies that cut into TV backlights have stepped up their efforts to expand capital expenditures. According to statistics, global LED factories will substantially adjust their capital expenditures in 2010, with an average range of 2.5 to 3 times, a record high. The US giant Cree also plans to double in 2010.
In response to the development trend of large-size LED backlights, Everlight expects to significantly expand production capacity in 2010, and capital expenditure will reach 3.7 billion yuan. In particular, SMD-type LED packaging capacity will be expanded from 1.35 billion at the end of the third quarter of 2009 to monthly capacity. With a scale of 1.95 billion, it is expected that new equipment will be introduced from the end of 2009 to January 2010. It is expected to be put into production before the end of the second season. 40% of Nuochong's production capacity is in Taiwan, and another 60% in mainland China.
Dongbei's capital expenditure in 2009 is about 300 million yuan. It is expected to increase to 700 million yuan in 2010. It is estimated that SMD production capacity will also be 600 million to 800 million in 2010, and with the growth of backlight and lighting applications, the future will not Excluding the increase, if the total investment capacity and the amount of investment in the upstream grain factory are combined, Dongbei expects the total investment amount to reach 1 billion yuan, the growth rate has always been the highest.

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