The demand of LED package for TVs will jump 450% to reach 9.36 billion units in 2010, says LEDinside

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In early 2009, after Samsung invested a large budget in promoting the new concept of LED TV, the market witnessed a surge in the replacement of new generation television. According to LEDinside’s latest market trend report, the total shipment of LED-backlit TVs in 2009 was about 3.5 million sets. Of that, Samsung was on the top with more than 70% share; followed by Sharp and LG. Notably, in the first wave of LED-backlit TV competition, shipment ratio of the two Korean companies accounted for 80% of the total.

As an increasing number of TV brand makers join in the competition, the LED-backlit TV shipment target in 2010 is expected to reach to 39 million sets. Of the total, shipments from Korean and Japanese vendors account for 40% and 30% respectively. In addition, calculating from the number of LED packaging, LEDinside estimated a demand of 9.36 billion LEDs in 2010, an annual growth rate of 450%. The shipment growth of Taiwan’s LED packaging vendors will face substantial threat and challenge under the following circumstances: Korea has substantial control over the supply of key LED components, and Japan has robust demand from its domestic market.

Demand of LED package for TVs in 2010 (E)

As for the price, take the 46-inch TV backlight module for example, the price gap of LED and CCFL continues to narrow; and by the end of 2010, the gap will diminish to less than 1.5 times, while the current price gap is around 2.4 times. The main reasons are the improvement of the luminous efficacy, the evolution of the production process and the reduction of the light bar usage. In 2010, continual decline of the LED price and the technology upgrade of the products are the biggest competitive advantages of LED-backlit TVs, compared to the traditional LCD TVs.