Trade Resources Industry Trends Demand for LED Backlighting Rebounded in The First Half of 2013

Demand for LED Backlighting Rebounded in The First Half of 2013

Demand for LED backlighting rebounded in the first half of 2013, but firms expect demand to slow down after mid-June because China's energy-saving appliance procurement subsidy program is close to an end. Despite the possible demand drop for LED backlighting products, Taiwan-based LED chipmaker Epistar believes demand for LED lighting will show strong growth in the second half of 2013 and lighting applications may account for 35-40% of its total revenues.

LED firms said judging from past experience, international tier-one TV makers usually slow down procurement in July-August with only China-based makers continuing to procure products. However, as China's energy-saving appliance procurement subsidies are set to end soon, demand for TV backlighting products in the third quarter may turn weak.

Benefitting from rising demand for LED backlight and lighting products, Epistar has seen capacity utilization rate for blue LEDs rise above 90% in the second quarter. Market observers believe Epistar may see second-quarter revenues grow 30-40% sequentially. The observers also noted that demand for backlight applications is still stronger than demand for lighting, and revenues from backlighting products are likely to account for 50% and lighting 25-30% of total second-quarter revenues for Epistar.

In addition, demand for AlGaInP LEDs has been relatively weak in the first half of 2013 due to falling demand for LED billboards in China. However, demand for AlGaInP LEDs is expected to return starting in June.

Taiwan-based LED packaging house Unity Opto stated that demand for LED backlights for large-size TVs may become stagnant at the end of the second quarter to the first half of the third quarter but demand will likely rebound as the market enters the traditional boom season in Europe and the US, as well as in China during its long holiday in October. In addition, backlighting shipments for tablets are likely to enter the peak season in the third quarter and revenues from tablet backlighting products are likely to show 40-50% on-year growth in 2013, said Unity Opto.

Unity Opto disclosed that shipments of LED light bulbs are expected to reach 2.8 million units in first-half 2013, exceeding the total shipments in 2012. Order visibility of LED lighting is clear to the third quarter, added the firm.

Source: http://www.digitimes.com/news/a20130603PD201.html
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LED Lighting Demand to Rise in 2013, Says Epistar
Topics: Lighting