The average price of high power LED for lighting applications fell by 6-9 per cent this quarter as a result of the price cut by Korean manufacturers. As prices continue to drop, the number of LED backlights applied to middle and large sized panels is expected to peak. LED backlight application has grown from 2012's 70 per cent to 92 per cent in monitors, and from 70 per cent to 90 per cent in TVs.

Data from LEDinside's report shows that in 1Q13 the cost of direct-type LED BLU dropped by approximately 3-5 per cent, while the cost of edge-lit LED BLU decreased by 4-5 per cent. LEDinside indicated that due to the enlarged light guide plate, the number of optical films must be increased in order to enhance module brightness in 46-inch or larger edge-type LED backlit TVs. Such being the case, however, module cost will also increase. In 46-inch backlight modules, for example, there is a price difference of 1.5 times between edge-type BLU and direct-type BLU.

 

 

Source: LEDinside

 

 

 

 

This year, Korean TV brands Samsung and LG simultaneously introduced direct-type LED TVs of all sizes, accounting for over 70 per cent. Lacking brand advantage, Taiwan's two major panel manufacturers AU Optronics Corp. and Innolux have conservatively chosen edge-type LED backlight as the panel light source. Among China's six major TV brands, the proportion of edge-type and direct-type LED backlight is approximately 4:6.

Affected by the rapid increase in LED TVs and chubby LED TVs, TV brand manufacturers have continued to reduce CCFL TV price in order to clear inventory. LEDinside forecasts CCFL backlight module cost will fall by less than 1.5 per cent in 2Q13 and only 1 per cent in 3Q13. LED TV products are already fully developed, and LED package sizes are roughly defined.

Mainstream LEDs include 7020/ 7030 for edge-type LED TVs and 3528/3030 with lens for direct-type LED TVs. LED power has increased from 0.4W each to 1-2W or more. Due to the increased brightness efficiency of LED, LED package materials shifted from PPA and PCT to the more heat-resistant EMC.

In terms of LED price for lighting application, medium power LED ASP fell by 7 per in 4Q12 due to the price cuts by Korean manufacturers. With cost-effective medium power LED 5630 being increasingly applied in both bulbs and LED lamps, the 5630 price has continued to decline. The substantial price drop has enhanced the lighting demands in China, in turn leading to a shortage of various LED packages.

So far, high power LED ASP has fallen by 6-9 per cent. LEDinside believes that the falling price is not only due to the medium power LED price cut, but also agent conversion and the manufacturers' goal to reduce inventory before Chinese New Year Holiday. Although the lighting market demand has been slowly increasing after Chinese New Year, due to the new medium power LED introduced by Korean manufacturers, there will still be intense price competition in the LED lighting market.