Bright LED cancels SMD LED expansion plans

Taiwan-based LED packaging house Bright LED Electronics has decided to cancel plans to expand surface-mount device (SMD) LED capacity since the company's current utilization rate for SMD LEDs is only 80% due to fierce competition from China makers, according to industry sources.

Bright LED's current SMD LED monthly capacity is 350 million units, the sources noted. The company's utilization rates for LED lamps and infrared LEDs are only about 60-70% as orders for small- to medium-size commercial billboards have yet to pick up, the sources added.

The sources estimate that Bright LED's revenues will remain flat at about NT$306 million for June, during which order visibility could only extend to three weeks, compared to four weeks in May.

Bright LED has received about NT$300 million worth of LED procurement orders from the Taiwan market and the company is actively soliciting LED streetlamp orders from China, the sources said, adding that demand for LED streetlamps in China in the second half of 2009 is about 450,000-900,000 units.

Eyeing the market for 24 hours lighting for such venues as hospitals, parking lots, and for special commercial purposes, Bright LED has launched a series of energy-saving lighting products using Epistar's LED chips, and already started shipments in March.