Demand for LED Chips Is Weak for September 2011

Epistar general manager Chou Ming-chun said that demand for LED chips is weak for September 2011 due to sliding sales of LED TVs in the consumer market. It is difficult to forecast the fourth quarter outlook of the LED industry given inventories in the supply chain, he noted. However, revenues of LED lighting are expected to rise 30% by the end of the year, he added. According to industry sources, the market will see polarized LED TV trends in 2012. High-end models will feature lightweight, 3D, and Internet connectivity. Low- to mid-range LED TVs will focus on low prices and power saving. In addition, backlight modules for LED TVs will advance to side-edge type in 2012. LED chips used a 40-inch LED TV will be reduced to 800, 000 units from 1.2 million, sources said. Epistar's Chou said that LED power efficiency will be increased to meet the requirements of clients who seek to comply with US Energy Star regulations concerning LED TVs. Luminous efficiency of LEDs in 2012 will be enhance 15-20% compared with that in 2011, he said. Chou said it will still be difficult for prices of LED TVs to stand at a similar level as those of CCFL TVs in 2012, because the end price of LED TVs in 2011 is 30-40% higher than that of CCFL TVs. So it is possible for LED TVs to still have a 20% price difference from CCFL models in 2012, he said. In addition, orders for LED TVs have been lower-than-expected, said Chou, because the rising number of LED suppliers has diluted market share. He said LED prices could fluctuate in 2012 after suppliers in China join the fray. Sourcedigitimes. com