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LED TVs boost LED utilization rate

Posted: 28 Mar 2012 ?? ?Print Version ?Bookmark and Share

Keywords:LED TV? utilization rate? backlighting?

LEDinside, a research unit of TrendForce Corp., has reported a growing revenues of Taiwan listed LED manufacturers in February, increasing by 14.1 MoM and 4.5 percent YoY. According to the market research division, the high demand that is expected to continue until April is due to inventory stocking in the backlight market and increasing bidding projects in the lighting market.

This year, Korean panel makers launched new LED TVs that stimulated the demand and in turn increased LED companies' utilization rates. As a result, LED makers' revenues rebounded by 15-20 percent compared to January. Following Samsung Electronics report to cease its production of CCFL LCD TV, the utilization rates of the LED suppliers in Samsung's LED TV supply chains, including Epistar, Formosa Epitaxy and the package makers such as Unity Opto, has been climbing since March.

LED chip manufacturers

Revenue ranking of February 2012 for LED chip manufacturers


LED chip makers monthly sales revenue (Taiwan), 2011-2012

However, according to LEDinside, Samsung was the sole Korean TV maker that launched low price direct-type LED TV. LG and other Japanese TV brand vendors remained conservative about the market acceptance of the new LED TVs. The panel makers' purchasing strategies depended on the outlook for the end market sales in 2Q12, which closely affected the LED industry's development this year. In light of the uncertain prospects for the backlight market, players still have to place certain emphasis on the lighting market to be on the safe side.

China's lighting subsidy benefits LED lighting market
As for the lighting market, in order to meet the market expectations for lumens per dollar and to increase market share, LED chip and package's prices for lighting usage continued to plunge, but the companies still strived to make inroads into the lighting market. Notably, the financial subsidy policy issued by China's official ministries has generated a considerable amount of attention in the industry. China launched a new subsidy policy for the solid-state lighting products this year, arranging public biddings for interior and outdoor lighting products. Nonetheless, during China's previous endeavor "Solid-state Lighting Demonstration Projects," besides Philips and Panasonic, all the other bid winners were China-based companies. LEDinside expects the same results this time around. Given that China's LED chip and packaging quality is still not quite on par with�global big names, European, American, Taiwan and Korean companies will still win bids despite China's efforts to increase the self-sufficiency of LED chip and package, indicated the research unit.

LED package manufacturers

Revenue ranking of February 2012 for LED package manufacturers

LED package manufacturers

LED package makers monthly sales revenue (Taiwan), 2011-2012

LED TV backlight drives LED utilization rates
Benefitting from the increasing large-size backlight orders, Taiwan LED chip foundries' revenues grew17.4 percent MoM and -16 percent YoY. With Samsung's TV backlight orders, Epistar and Formosa Epitaxy's revenues went up 15-20 percent, with utilization rates hitting 80 percent. The utilization rate in March is expected to further increase to 90 percent. Additionally, with the demand for residential lighting beginning to pick up, Epileds' February revenue posted 55.2 percent increase MoM.

LED package makers post revenue growth
The revenues of Taiwan LED package makers in February registered 11.7 percent MoM, 6.5 percent YoY increase. Lextar's revenue grew 19.1 percent MoM, with the utilization rate increasing to 70 percent. The company plans to set up lighting product assembly lines in its Suzhou plant in the hope of reducing manufacturing cost and reaching economies of scale. Benefiting from the increasing residential lighting market demand in Japan and its IR LED's solid performance, Lite-on Technology's revenue increased 5.9 percent MoM. The company is expected to put more emphasis on the LED industry, added LEDinside.

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