GLII: Taiwan's LED packaging manufacturers backlight "dangerous" bureau

[Source: Gaogong LED's "LED Research Review" magazine March issue GLII / 覃宏昂] In 2012, Taiwan's LED packaging manufacturers benefited from the rapid growth of LED backlight market penetration, Longda Electronics, Dongbei Optoelectronics successfully got rid of 2011 The loss of adversity and the realization of substantial profits.

In 2013, LED backlights will continue to be the main driver of revenue growth for LED package manufacturers in Taiwan. However, the High-Tech LED Industry Research Institute (GLII) believes that China's LED backlight device manufacturers are growing rapidly and have already pose a huge threat to LED packaging manufacturers in Taiwan. In the next two years, LED packaging manufacturers in Taiwan will face the risk of slowing revenue in the backlight device market.

Mainland backlight device manufacturers grow rapidly

At the beginning of the development of LED backlight devices, the recognition of backlight devices by mainland LED packaging manufacturers was not high. The mainland LED backlight market was mainly occupied by Taiwanese and Korean packaging factories. In the past two years, mainland LED packaging manufacturers have risen rapidly in the field of backlight devices, and they have continuously seized the market share of LED backlight devices in Taiwan and Korean packaging factories.

Ruifeng Optoelectronics, one of the representative companies of mainland backlight manufacturers, achieved a total operating income of 500 million yuan in 2012, a year-on-year increase of 71.63%; net profit was 407 million yuan, an increase of 41.48%. Among them, the revenue of backlight devices increased by more than 100% year-on-year. Another company, Jufei Optoelectronics, mainly focuses on small and medium-sized backlight LED devices. Its revenue in 2012 was 495 million yuan, up 42.74% year-on-year; net profit was 92 million yuan, up 14.15% year-on-year.

Table 1 Major LED backlight device manufacturers in mainland China and Taiwan in 2012 (unit: 100 million yuan)


Table 2 Changes in gross profit margin of LED backlight devices from 2009 to 2012


In the LED packaging manufacturers in Taiwan, thanks to the continued increase in LED backlight orders, Longda Electronics and Dongbei Optoelectronics successfully escaped the loss of adversity in 2011. In contrast, Hongqi and Qihong LED backlights fell out of favor, and the LED lighting business did not improve. As a result, the profit level in 2012 dropped sharply and suffered a large loss.

GLII believes that Taiwan's second-line LED package manufacturers have gradually lost market share in the field of backlight devices.

In stark contrast, in 2012, China's LED packaging manufacturers in the field of LED backlight devices market share has increased to 20%. With cost-effective advantages, especially in the large-size backlight field, more and more downstream application manufacturers are turning to purchasing backlight devices from LED packaging manufacturers in mainland China.

At present, whether it is a large-size LED backlight device or a small-sized LED backlight device, the average gross profit margin in mainland China is still above 30%, which still has a good profit margin compared with the average gross profit margin of 20% of LED lighting devices.

This also makes mainland China's LED packaging manufacturers have chosen to switch to the field of LED backlight devices last year.

GLII statistics show that more than 60% of LED package manufacturers in mainland China are starting to produce LED backlight devices in small quantities. At the same time, the manufacturers of the original LED backlight packaging business are also greatly expanding their production capacity. In 2013, the production capacity of LED backlight devices in mainland China will exceed 2000 KK/month. GLII expects that LED backlight devices will enter the capacity release period in 2014, which will further squeeze the market space of LED packaging manufacturers in Taiwan.

Backlight market growth slows

In 2012, major TV manufacturers around the world began to gradually introduce low-cost direct-lit LED backlight modules, resulting in a significant reduction in the use of single TV LED beads. Taking a 32-inch LED TV as an example, the amount of side-illuminated LED lamp beads is 60-70, while the amount of direct-lit type is only 18-32.

GLII statistics show that in 2012, the LCD backlight penetration rate of mainland LCD TVs has exceeded 80%. Given that LED backlight penetration is likely to increase to 90% in 2013, it is estimated that demand for large-size LED backlight devices will slow down in 2014.

At the same time, the penetration rate of small and medium-sized LED backlight devices in mobile terminal devices, desktop displays and notebook computers has exceeded 95%, and the market demand is unlikely to increase significantly.

With the further improvement of the luminous efficiency of LED devices, the usage of LED lamp beads will become less and less. Therefore, in the next few years, mainland LED backlight packaging device companies have potential risks such as slowing demand and overcapacity.

Based on the above factors, GLII believes that in the next few years, the market share of mainland LED packaging manufacturers in the field of backlight devices will increase rapidly. LED packaging manufacturers in Taiwan are also facing the danger of falling backlight device revenues.

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