Continuous Weak Demand for LED TV Backlight Modules Has Been Causing Delayed Growth

The continuous weak demand for LED TV backlight modules (BLUs) has been causing delayed growth in the LED market. However, according to Robert Yeh, chairman of Taiwan-based LED packaging house Everlight, the growth of LED lighting is foreseeable and will become the driver of market growth in 2012. Prospects for the LED market are optimistic. According to the Photonics Industry and Technology Development Association (PIDA), the top-ten Taiwan-based LED packaging and module firms will record total revenues of NT$70.8 billion (US$2.3 billion) in 2011, a 4% on-year decrease. Industry sources pointed out that rapid narrowing of the price difference between LED and CCFL BLUs is difficult. The penetration of LED TVs in 2011 is around 40%. Small- and medium-size LED BLUs have been facing decreasing demand due to the shrinking market share of Nokia. LED firms such as Everlight, Unity Opto and Lextar have been suffering disappointing sales of LED BLUs. Lextar expects LED lighting to account for 40% of total revenues in the second half of 2011 and 50% in 2012. Everlight's LED lighting business currently accounts for 8-10% of total revenues but it expects the figure to grow to 15% in 2012. Lite-On and Unity Opto current have LED lighting business accounting for 5% and 15% of total revenues. The two firms anticipate the business to grow to 8% and 30% respectively in 2012. Bright LED also anticipates sales from LED lighting products to grow to 10% in 2012 from 7% currently. Yeh added that the current price hike of rare earths is pushing up the cost of energy-saving light bulbs, which will help to narrow the price difference with LED light bulbs. Hence prospects for LED lighting in 2012 are quite optimistic. Source: www.digitimes.com