It is reported and speculated that the LED (Light-Emitting diode) business will be going through a slowdown in the second half of 2011 and this is widely due to the situation of over-supply affecting the global LED market. According to Heng Huck Lee, the Chief Executive Officer of Globetronics Technology Berhad, the company’s LED products had recorded 5 to 10% lesser as compared to last year’s corresponding period. The LED business is one of the key contributors to annual revenue of Globetronics.
Heng said that despite the global slowdown in demand, they are able to continue sustaining their business in the second half because Globrtronics have been able to secure new customers in their integrated circuits in hard disk drives as well as their high performance timing device which are used in consumer electronic products. He also said that the company will be launching a new range of LED module product in November for the American and European markets which will be bring in the revenue for next year.
Apart from the over-supply situation the debt crisis situation in the American and European markets have created a challenging business environment for them. Furthermore, the stronger ringgit and the rising cost of energy will also cause eroding margins and higher cost of production.