Backlight market downturn LED industry supply and demand gap is expected to narrow

NPD DisplaySearch observed that over a period of time due to the LED backlight LCD TV sales weak and slow growth in 2011 LED lighting, LED industry appears the situation of supply and demand drop of pile up in excess of requirement, 30%; but the agency is expected in 2012, with the backlight and lighting market demand, the industry will be effectively alleviated the problem of excess supply. NPD according to the latest release of DisplaySearch LED (Quarterly LED Supply/Demand quarterly market forecast Market Forecast Report), the first quarter of 2012 LED excess supply and demand ratio is 19%, the second quarter figures will be further reduced to 16%. The agency said that in 2010, Samsung LED, LGIT and lextar Electronics (Lextar) and other major LED manufacturers to rapidly expand the capacity of MOCVD, but found that overestimated the demand; to deal with the problem of excess supply, they began using rate in late 2011 to adjust production capacity, rate of decline in the average capacity utilization was 50%. NPD DisplaySearch predicts that in 2012 there will be two major factors promoting the rapid growth of the demand of LED; first, low cost direct type LED backlight will promote the rising demand for LED. CCFL backlight TV and straight down LED backlit TV at the price of only a small difference, a 32 TV, the price difference is only about 5%. In addition, high efficiency and energy-saving characteristics will also promote the sustained growth of LED lighting, LED lighting products such as the $1 lumens are close to lumen traditional lighting products a day. After the March 2011 earthquake in Japan, due to power shortages and government incentives, LED lighting sales increased. NPD DisplaySearch predicts sales of lighting products in Japan will continue to grow in 2012, while other regions such as China, the United States and South Korea are also developing LED lighting. At present, LED backlight applied to all small and medium size LCD TV, Mobile in PC (including laptop, mini notebook and tablet computer) the penetration rate of nearly 100%, LCD monitor and LCD TV penetration continues to grow; but the number of pieces per package module of LED is also reduced, and low cost direct type LED TV is expected in 2012 to achieve rapid growth.

Supply and demand ratio of LED backlight and lighting applications in the third quarter of 2010, ~2012,