The led industry experienced a weak peak season for the past two consecutive years last year, resulting in a sharp decline in the price of blue LED chips. Under the difficulty of LED lighting prices, Taiwan-based led chip factories expanded their transformation; the proportion of revenue in the third quarter of the new century was estimated to reach 5-10% when green LEDs entered wearable devices through packaging factories; Taigu introduced OEM orders to seek cash flow first.
In August, the revenue of Taiwan-based led chip factories mostly stopped falling and rebounded, which violated the traditional peak season effect since 2 years ago. However, most Taiwan-based led chip factories have no longer fallen in love with LED lighting or backlighting, and have successively turned to special applications of traditional blue light, or high-end blue light applications.
The new century said that it does not pursue expansion of production and revenue growth this year, hoping to sort out a better product portfolio based on the existing revenue, and adjust mobile phone flash (covered with crystal) and CSP applications such as car headlights, special lighting and high-end TV backlighting are the transformation direction, and the application of green light in wearable devices is also one of the transformation directions.
Green LED is the strength of New Century. The company has entered the supply chain of wearable devices through LED packaging factories for measuring heartbeat and pulse. New Century said that the measurement of wearable devices has its own special wavelength requirements, and green LED is the main component. New Century has already After small-volume deliveries have begun, this quarter is estimated to account for 5 to 10% of revenue. New Century speculates that the third quarter will be the peak period for the launch of new wearable device brand products. The distribution of new products will drive a wave of demand. Whether the proportion of green LEDs will continue to increase in the future depends on the sales of brand factories.
In terms of blue-light LEDs, New Century has faded away from general lighting and focuses on CSP and flip-chip packaging. CSP car lights have been introduced to mainland car lighting manufacturers through Qunden. New Century provides high-power CSP components and delivers them to mainland car lighting manufacturers through Qunden.
In addition, New Century did not accept OEM orders in the past. In the third quarter, it tried to accept blue-light LED OEM orders, mainly for special lighting orders released by major European and American manufacturers. The gross profit margin or price are better than traditional blue-light LED applications.
Taigu stressed that although the RD team is actively studying vehicle use and IRLED, the transformation is not an easy one. At this stage, orders will be picked up at a better price, and OEM orders will be introduced to seek cash flow first.
ANNA