LEDinside: LED Companies Focus on New Tech Developments During 4Q13

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Korean manufacturers are still planning to increase direct-type LED TV shipment volumes, according to LEDinside, a research subsidiary of global research institute TrendForce. In addition, as Chinese Lunar New Year approaches in January, most LED manufacturers are working hard to release higher Price/Performance (P/P) products in 2014. In face of fierce competition and conventionally low season in 2014, companies are developing new flip chip LED and EMC package technologies to increase their competitiveness.

Listed Taiwanese LED manufacturers total revenues slid 3.09 percent to NT$ 10.84 billion (US$ 370 million) in Oct. 2013. Taiwanese LED chip manufacturers revenues reached NT$ 4.15 billion (+7.5 percent Month-On-Month), while Taiwanese LED packagers revenues peaked to NT$ 6.69 billion.

 

Direct-type LED TV has become one of the mainstream LED TV models in 2013, due to reduced LED chip volume usage, and lower costs, according to LEDinside. The number of LEDs in future models is expected to drop further as direct-type LED TV begins using higher power LEDs. To further cut LEDs used, more manufacturers will being using wire-bonding free flip chip LEDs, and high current IC, due to these technologies advantages, said LEDinside. The research organization projected direct-type LED TV average market penetration rates will reach 40 percent by 2013, and grow to 60 percent in 2014.

In addition, advantages from flip-chip LEDs in lighting is also increasingly evident, including for candle light and tube lights. Manufacturers are also releasing Chip-On-Board (COB) products aside from single LED light sources to meet different lighting market demands, due to COBs shadowless and simple optic design. COB currently has a 15 percent market share, and its lighting market value is expected to continue stable growth.

Epistar has developed different product lines, and has received stable orders for infrared (IR) and AlInGaN LED products. The company’s revenue grew 6.4 percent to NT$ 1.98 billion in Oct. 2013. Uni Opto is also setting up its business strategy in automotive lighting sector, and is currently awaiting client approval. Chinese TV clients have finished adjusting their inventory levels in 3Q13, a rebound in the Chinese TV market is expected in 4Q. 

Overall, LED manufacturers tend to emphasize costs in the backlight market. As a result, companies are improving product specs to increase lighting efficacy and reduce costs. In comparison, the lighting market is still focused on meeting client P/P demands. Therefore, to maintain revenue and profits Taiwanese LED manufacturers are also beginning to launch their own lighting brands on top of OEM products.