Shenzhen Lehman Optoelectronics Interview: Under the effect of expanding domestic demand in China, the LED display market still has 40% growth potential in 2009.
Theme: Industry
LEDinside visited the general manager of Liman Iron of Shenzhen Lehman Optoelectronics at the end of October 2008. Through an interview, he learned about the operation status of Lehman Optoelectronics and the current LED market in China. General Manager Li believes that the Chinese government maintains a high economic growth rate by expanding domestic demand and increasing public works, and is still optimistic about China's LED display market in 2009.
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LED packaging factory based in South China
Lehman is located in Baiwangxin Hi-Tech Industrial Park, Nanshan District, Shenzhen, China. Founded in 1993, the company was first established in the field of communications related fields. After 2004, it cut into the LED industry from the packaging end. It is a well-known LED packaging manufacturer in China.
At present, Lehman is divided into two major business divisions, the Packaging Division and the Application Division. The packaging business unit currently has a monthly capacity of 60 KK. The application business office uses LED indoor and outdoor display screens as the company's main products.
Lehman Optoelectronics' main customers are North America and Europe, accounting for nearly 60% of the revenue, and the rest are domestic customers.
If differentiated by product category, Lehman products mainly use LEDs for display screens, accounting for nearly 80% of revenue, and most of the display products are exported to Europe and the United States. The lighting market is 15%, and the rest of the products are LED backlight related applications.
Figure 1: Lehman Optoelectronics revenue distribution
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Lehman Optoelectronics main products
Since its establishment, the company's best-selling products are oval LEDs for RGB LEDs for outdoor billboards. Due to the wide viewing angle and excellent optical properties of elliptical LEDs, 90% of outdoor billboards now use oval LEDs. Lehman's performance control requirements for this product are quite high, and the product specifications meet the display failure rate of less than 10ppm.
Figure 2: Lehman Optoelectronics main product
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China's LED display market demand is still strong
General Manager Li Mantie said that although the demonstration effect brought by the 2008 Beijing Olympic Games was strong, the Chinese market was affected by factors such as the international economy, so the Chinese government must strengthen its domestic demand policy to maintain a high economic growth rate. The government's expansion of investment will help China's LED industry, and the LED industry is in line with the national strategy of energy conservation and environmental protection. It is estimated that there will be some large projects in the future.
Based on the average annual growth of China's LED display market output value of 30%, General Manager Li believes that with the decline in LED prices next year, the growth rate of China's LED display output may slow down. However, through LED price cuts, it is easier to stimulate the demand for LED displays from the government or businesses. Therefore, it is estimated that the number of LED display shipments produced in China next year is still expected to grow by more than 40%.
LEDinside view
LEDinside observed that the LED industry is facing an embarrassing situation of upstream supply. Many of Taiwan's excess epitaxy still need to pass through the Chinese channel to reduce production capacity, and through the Chinese channel can also curve into the international market and the capacity utilization rate of China's local packaging plants is widespread. Still maintained at around 70%. It shows that the Chinese market is still healthy for LED demand. However, under the leadership of China's policy of expanding domestic demand, whether it will end up with any good benefits is worthy of waiting for the entire LED industry.
LEDinside visited the general manager of Liman Iron of Shenzhen Lehman Optoelectronics at the end of October 2008. Through an interview, he learned about the operation status of Lehman Optoelectronics and the current LED market in China. General Manager Li believes that the Chinese government maintains a high economic growth rate by expanding domestic demand and increasing public works, and is still optimistic about China's LED display market in 2009.
LED packaging factory based in South China
Lehman is located in Baiwangxin Hi-Tech Industrial Park, Nanshan District, Shenzhen, China. Founded in 1993, the company was first established in the field of communications related fields. After 2004, it cut into the LED industry from the packaging end. It is a well-known LED packaging manufacturer in China.
At present, Lehman is divided into two major business divisions, the Packaging Division and the Application Division. The packaging business unit currently has a monthly capacity of 60 KK. The application business office uses LED indoor and outdoor display screens as the company's main products.
Lehman Optoelectronics' main customers are North America and Europe, accounting for nearly 60% of the revenue, and the rest are domestic customers.
If differentiated by product category, Lehman products mainly use LEDs for display screens, accounting for nearly 80% of revenue, and most of the display products are exported to Europe and the United States. The lighting market is 15%, and the rest of the products are LED backlight related applications.
Figure 1: Lehman Optoelectronics revenue distribution
Lehman Optoelectronics main products
Since its establishment, the company's best-selling products are oval LEDs for RGB LEDs for outdoor billboards. Due to the wide viewing angle and excellent optical properties of elliptical LEDs, 90% of outdoor billboards now use oval LEDs. Lehman's performance control requirements for this product are quite high, and the product specifications meet the display failure rate of less than 10ppm.
Figure 2: Lehman Optoelectronics main product
China's LED display market demand is still strong
General Manager Li Mantie said that although the demonstration effect brought by the 2008 Beijing Olympic Games was strong, the Chinese market was affected by factors such as the international economy, so the Chinese government must strengthen its domestic demand policy to maintain a high economic growth rate. The government's expansion of investment will help China's LED industry, and the LED industry is in line with the national strategy of energy conservation and environmental protection. It is estimated that there will be some large projects in the future.
Based on the average annual growth of China's LED display market output value of 30%, General Manager Li believes that with the decline in LED prices next year, the growth rate of China's LED display output may slow down. However, through LED price cuts, it is easier to stimulate the demand for LED displays from the government or businesses. Therefore, it is estimated that the number of LED display shipments produced in China next year is still expected to grow by more than 40%.
LEDinside view
LEDinside observed that the LED industry is facing an embarrassing situation of upstream supply. Many of Taiwan's excess epitaxy still need to pass through the Chinese channel to reduce production capacity, and through the Chinese channel can also curve into the international market and the capacity utilization rate of China's local packaging plants is widespread. Still maintained at around 70%. It shows that the Chinese market is still healthy for LED demand. However, under the leadership of China's policy of expanding domestic demand, whether it will end up with any good benefits is worthy of waiting for the entire LED industry.
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