Recently, Li Bingjie, the chairman of Jingdian, and Zhou Mingjun, the general manager of the company, actively visited the downstream packaging customers to consolidate the customers. As the price of LED terminal products in 2011 is facing downward pressure, the LED packaging factory is expected to cut the average price of the upstream epitaxial products by 10%. 15%, plus the quotation of the first season sapphire substrate is still the same as the fourth quarter of 2010, LED epitaxial plant will face the pressure of upstream materials and downstream customers in the first quarter of 2011.
It is understood that Li Bingjie and Zhou Mingjun have recently visited downstream packaging customers. In addition to understanding the number of orders placed by customers in 2011, the two sides also discussed the recent price of Epitaxial products.
Although the LED industry is expected to return to Rongjing in the second quarter of 2011, downstream packaging customers such as Yiguang Chairman Ye Yufu, Huaxing Chairman Liu Shouxiong and Dongbei (2499) General Manager Lin Yixi are all optimistic about LED size in this year. Backlight, lighting and tablet computer backlight applications, but in the face of product pressure, the packaging factory is expected to bargain 10-15% of upstream products, and even some products bargained to 20%.
In addition, Taigu said that the quotation of the sapphire substrate in the first quarter will still maintain the historical high level of the fourth quarter of 2010, and for the 2-inch product, the average offer is still above $30.
In this regard, Chen Yanren, general manager of Jingmei, pointed out that the overall price of the first quarter slicing plant remained at the level of the fourth quarter. Among them, the 4-inch product was just starting out and the price fluctuated greatly. It is currently about 120-140 dollars.
Yan Feng, chairman of the board of directors, said that due to the pressure of price reduction every year, the price of LED will affect the profitability of 2011; but in the near future, the price of the upstream sapphire substrate plant has begun to loosen, the price of 2 inch sapphire substrate From the end of the third quarter of the 30 to 35 US dollars fell to 25 to 30 US dollars, the overall gross profit margin of 2011 is expected to fall between 30 to 35%.
Jane Feng also pointed out that the price of sapphire substrates continued to rise, and forced the upstream epitaxial plant such as Yuyuan to turn to the sapphire substrate factory in China and Russia. Since the second season will face the peak season of LED, under the demand amplification, LED Lei The crystal factory is also worried about the recurrence of the nightmare of sapphire substrate prices.
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