Looking back on the LED backlight market the year before last, the situation was bleak and the overall profits were in a state of dramatic decline. However, after last year's slow climb stage, this year's LED backlight market will usher in a new recovery.
Last year's LED backlight market, the rapid decline in product pricing and lighting
market demand as expected, resulting in a total margin of non guaranteed. And because of this year's rapid expansion of the mainland LED manufacturers, resulting in oversupply, low-priced products, but very little sales. In addition, the demand for the slow growth of the backlight terminal, which is represented by the TV market, also makes the market vitality of the LED backlight market rapidly decline. This situation continued until last year, and by 2013, LED backlight market profits began to climb slowly. The main reason is that some factories especially in mainland China as a small factory recession forced the closure of the scene, makes the pile up in excess of requirement eased, coupled with the permeability due to have very low price can be improved rapidly. Although this year can not expect the market to have a profitable turn over, but for the next year's market recovery paved the way.
By this year, the situation has shown that the LED backlight market will recover this year. First of all, to the TV backlight, for example, due to the promotion of the mainland color TV brand, LED backlight penetration in this market has increased substantially since the beginning of last year. By this year, that is, in 2014, LED backlight can basically replace the cold cathode tube in the TV market. Secondly, although the production of LED products has become easier, but because of the higher quality requirements of consumers, the manufacturers of LED products are becoming more and more demanding.
The lack of advanced technology, production innovation quality products in small and medium-sized manufacturers will face closed down one after another or to do the LED downstream products of the situation, the rest will have high technology content, high quality and large enterprises, and will gradually expand. This is very important for controlling the market saturation and improving the product quality of the whole market. Future enterprises will be more and more toward innovation, channels, brand direction, the market will eventually eliminate most of the small and medium-sized enterprises without capital competition.
A number of Taiwan LED manufacturers announced revenue data show that, in the backlight, lighting and other products strong demand, in February the industry off-season is not weak, there is a tendency to enter the peak season. Among them, the chip leading crystal power due to strong lighting orders, revenue in February compared to January contrarian growth of nearly 5%, a record high over the same period. Based on outstanding performance, Credit Suisse and Morgan Stanley both raised corporate earnings forecasts.
Judging from the recent performance of Taiwan LED industry chain, upstream chip business revenue growth generally exceeded the middle reaches of the package. In response, UBS Securities report said that last year the proportion of LED chip oversupply has dropped to 15%, is expected to only 4% this year, relatively tight supply. Promising prospects in the industry, chip enterprises resilient performance.
