LED is stepping into the slack season. The encapsulation factories as Dongbei, Longda, Edison are lacking of kinetic energy so that the profits in October decrease compared to slight increase in September. Dongbei declared that with next household appliance subsidy gained by the mainland TV users, the fourth season backlight order will gradually be withdrew. Longda will continuously work on the straight-down backlight TVs.
The sluggish need of mainland TV need shock the LED packaging factories in Taowan differently. In October, Dongbei earned NTD 0.53 billion (the same below), growing 3.31% monthly. Longda was 1.059 billion yuan, cutting by 7.02% monthly; Edison was 0.218 billion yuan, decreasing 7.23% monthly. If comparing to the same period last year, Dongbei decreased near 40%. The main reason is that backlight taking over a big part in profits and suffered more by the end of household appliance subsidy.
On contrary, Edison was not shocked by the sluggish need of TV as it is centering on high-power packaging and lighting market. The profits in October grew 35% compared to the same period last year. The profits of LED vertical integration factory Longda increased by 24% in October than the same period last year because of the effect of merging.
Longda indicated that the fourth season is the traditional slack season for lower TV appliance need. From the perspective of lighting application, Longda will move the lighting assemble lines to the mainland on a large scale and to cut the cost by the advantage of merging to cope with the decline of interest due to the decreasing of the price.