LED Industry Visibility to Extend into Q3 Due to TV Backlight Demand

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According to LEDinside, the research division of Trendforce Corporation, the large-size LED backlight demand visibility is expected to extend into Q3. However, as TV sales conventionally enter the down cycle in Q1, the LED backlight orders reflect that the seasonality effect will occur in early  Q4. Therefore, whether the LED lighting in Q4 can prop up the market demand will become an important observation focus.

Based on LEDinside’s statistics, listed LED manufacturers in Taiwan generated total revenue of 10.568 billion NTD in June, 9.5% up compared with revenue of 9.65 billion NTD in May and 85.3% in annual growth rate. The revenue for LED chip manufacturers in June amounted to 4.62 billion NTD, 8.1% increase compared to that of May. The revenue for LED package manufacturers in June totaled 5.948 billion NTD, which rose 10.6％ from May.

Compiled by LEDinside, LED index (LEDX) observes the industry through the performance of the LED industry market value. Currently, the total LEDX has slightly rebounded. LED epitaxy index (Chip LEDX) has recovered to 4107 points, while the LED package index (Package LEDX) also climbed up to 5206 points. 

Taiwan's overall revenue of chip manufacturers observed in June summed up 4.62 billion NTD, which increased 8.1% from May, with a monthly growth rate of 8% and yearly growth rate of 84.5%. The overall June revenue of downstream package manufacturers has reached 5.943 billion NTD, with a monthly growth rate of 10.5% and yearly growth rate of 85.8%.

At present, the overall demand for LED is optimistic with orders for large-size LED backlight remaining strong. Since many package manufacturers sent large-sized backlight LED samples to their clients for certification in 1H this year，the 5630 type for TV backlight has begun shipment to clients in the 2H10, which will help boost the performance.   

Besides the backlight market, the light market demand is also hot because high power LED specifications keep upgrading while the price per lumen maintains downtrend. Moreover, some manufacturers have started to seize the market share with mid- or low-power LED products. Therefore, prices in the LED lighting market begin to ease off when manufacturers continue to expand production in the latter half of the year.

 

LEDX

Produced by LEDinside, LEDX is an indicator for tracing LED industry. Amid the increasing awareness of environmental protection, eco-friendly LED lights have been applied to infrastructures in many countries. LED products show a great market growth, while its applications continue to expand even greater. In view of this, there should be a positive trend in the long run for this industry. To approach the LED market trend closely, LEDinside releases LEDX to observe how LED industry is viewed in the market. To further analyze the change in industry structure, LEDX is divided into two indices, LED chip & package – LEDX, as a reference for market players.