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LED package makers for backlight apps enjoy rising profit

Posted: 13 Aug 2013 ?? ?Print Version ?Bookmark and Share

Keywords:LED? backlight? TV?

LEDinside, a green energy unit of TrendForce, has forecasted that as Chinese manufacturers' package technology keeps on improving, the market for LED package for backlight in China is set to follow the same path.

This year, LED package industry in China is growing at a fast pace. For example, Refond posted 67 per cent YoY LED revenue growth for 1H13. At the same time, its LED revenue from small-sized backlight LED jumped by more than 10 million. Shenzhen Jufei Optoelectronics Co. Ltd., another Chinese representative of small-sized backlight LED package manufacturers, also logged a 25-55 per cent improvement on revenue YoY. Meanwhile, LED package manufacturers such as Refond, Jufei, MTC and Dongshan Precision Manufacturing Co. Ltd (DSBJ) perform better and better on the basis of strong China brand TV sets shipment. Despite the fact that these China factories are still unable to catch up to the capacities and revenue of Taiwan factories, they actually are on their way to appear on the backlight market, noted the market research firm.

Although Chinese LED package technology for backlight is not as good as Taiwan, they have earned acceptance from local downstream firms, especially through orders of smaller sized backlight used on smartphones. In China, many second tier mobile manufacturers, even some leading ones, prefer to use Chinese package manufacturers' products because of their better price/performance ratio. In addition, on large-sized backlight LED aspect, many of China-based TV set companies had started adopting locally made LED for large sized backlight since 2Q12. Amongst these six leading TV set companies, there are five of them that had introduced domestic-made LED. And the trend is increasing. Hisense is the only firm among these six firms that hasn't ventured to locally produced LED.

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