Fucai’s August revenue continues to weaken, MiniLED will return to the growth track next year at the latest

Fucai pointed out that the revenue of many peers has been weak recently, but the reasons for the slowdown in revenue of each company are different. Looking at MiniLED, some companies focus on mainland customers, and the impact has been more obvious since the second quarter of this year. However, Fucai's US customers' MiniLED sales have been relatively stable.

Fucai said that there are three major reasons for the current weakening of the LED market. First, the current downstream demand is indeed weak, mainly due to the impact of inflation on the demand of the entire LED industry, but not only for the Mini LED market.

The second is that with the global economic downturn, the inventory levels that were previously over-purchased are relatively high. It is expected that it will take at least one to two quarters to destock. However, the actual destocking speed is related to the recovery of the economy and consumption power. At present, it seems that this wave of inventory depletion may not end until the first half of next year at the latest.

Thirdly, the recent sluggish demand for consumer products has caused the application development of MiniLED niche products to be less than expected. In addition, the demand for IT products has weakened significantly. The large TV market, which was previously regarded as an important outlet for MiniLED by the market, has also experienced a downturn due to the economic downturn, resulting in poor penetration of large high-end TVs.

Even though the current demand for MiniLED and the overall LED market is weak, Fucai emphasized that the high-end display market willIt is still a clear trend for Mini LED to gradually gain dominance in the market. It is expected that after the market inventory is completed in the first half of next year at the latest, the Mini LED market is expected to return to the growth track. (Source: Taiwan Economic Daily)