2011 regional competition accelerated LED market price war has been heated

The global LED industry has entered a period of changing forces. As the Japanese lighting manufacturers set off a price war and led LED lighting to take off in the first year of the year, South Korea and China's mainland companies are also in turmoil, driving regional industry competition and intensifying LED applications in Taiwan to accelerate lighting applications. The layout, however, may lead to oversupply oversupply in the 2011 LED production competition, and the competition between Taiwan factories and international companies will also be intensified.

Large-size LCD backlights and LED lighting are considered as two-engined engines for growth in 2011. The industry estimates that the penetration rate of global LED lighting is about 3% in 2010, and LED lighting penetration rate is expected to reach 6 to 10% in 2011, especially The development of LED lighting in Japan has attracted the most attention. Due to fierce competition in the market, driven by the Japanese government in 2010, the prices of LED bulbs of first-tier manufacturers, including Toshiba and Panasonic, have been cut. LED manufacturers in Taiwan estimate that the cost will be reduced. Under the trend, LED bulb prices will continue to slide in 2011.

LED makers pointed out that the current European and American manufacturers of LED lighting products cost about 1.5 US dollars per watt, Taiwan factory price is in the 1.2 US dollars, with cost competitiveness, due to the shortage of LED supply in 2010, the year's price decline is flat, until the fourth quarter There is a noticeable drop in prices, among which high-power LED prices have fallen by about 10 to 15%. Looking into 2011, LEDTV will reduce its cost, which will lead to more LED chip production capacity for lighting applications. It is expected that high-power LED lighting will face at least a 15-20% price drop.

The LED industry estimates that Taiwan’s LED industry output value will reach NT$151.6 billion in 2010, a growth of approximately 60%. The 2011 production value is expected to challenge 201.5 billion yuan, and the 2012 and 2013 output values ​​are expected to challenge a total of RMB270 billion. And 380 billion yuan, as the world's LED industry output value in the fastest 3 years will challenge the 50 billion US dollars mark, the regional industry competition has entered a white-hot.

Compared with the LED package and module output value of each region in the world, Japanese manufacturers accounted for 31% of market share, ranking first, while Taiwan and South Korea respectively reached 20%, and Europe and the United States each accounted for about 10%, including South Korea. In 2009, the market share was only about 10%, but it quickly jumped to 20% in one year, which is in line with Taiwan's LED industry. The industry more predicts that South Korea's LED output value will continue to grow in the next two years. It is expected that the market share of LED packaging will increase to 24 to 25%, and the market share of LED packaging in Taiwan will continue to be in place.

However, the LED industry pointed out that due to the low utilization rate of Korean LED plants, the production schedule has slowed down significantly since the second half of 2010. On the contrary, Taiwan plants have benefited from the huge increase in demand for TV backlighting from Korean factories, and have increased Taiwan's LED procurement volume has led to a significant increase in LED production capacity. However, mainland LED manufacturers are rushing to catch up. The upstream MOCVD machine platform may open up in the second half of 2011. The industry is worried that once South Korea’s LED plant technology improves, the capacity of mainland manufacturers will also increase in volume, 2011. It is feared that there will be an overcapacity supply competition, and the LED market will enter into competition with price competition, and the price drop will probably exceed 30%.