Downstream price competition is fierce LED indoor lighting penetration or improvement
According to the industry, the demand for LED backlights began to increase in March-April. The production capacity of first-line LED packaging plants is close to full production, and as domestic packaging plants enter the TV backlight supply chain, chip purchases are further shifting to more cost-effective domestic manufacturers.
In March, driven by the increasing demand for backlights and the gradual increase in lighting orders, Taiwan's LED packaging companies' revenues increased by 23.5% year-on-year, and LED chip companies' revenues fell by 9.3% year-on-year. The industry believes that chip companies' revenue decline is mainly due to mainland chips. As a result of the increase in market share of manufacturers, the first-line plants such as Jingdian and Yanyuan had their same revenues in March, and the production capacity in the second quarter was nearly full.
In addition to Ruifeng Optoelectronics and Dongshan Precision, mainland enterprises, such as Wanrun Technology, Jufei Optoelectronics, Guoxing Optoelectronics and other packaging companies have begun to supply bulk to TV manufacturers. In 3-4 months, packaging companies are almost close to full production, while LED backlight chip procurement It has also begun to shift to cost-effective domestic enterprises to promote the increase in the operating rate of chip companies.
In March, Cree was the first to introduce a $9.99 6W450lm LED bulb. The price difference between LED and energy-saving lamps was reduced to 2 times. Domestic manufacturers will launch the same level of bulbs with a retail price of $6.99. The industry believes that the decline in terminal retail prices will drive Increased penetration of indoor LED lighting.
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