14 May 2010


LED prices likely to rise 5-10%, say Taiwanese chipmakers

LED backlight products may see their prices increase by 5-10% as both upstream LED chip and epitaxial wafer prices will soon rise due to strong market demand, reports Digitimes according to sources from LED packaging houses.

Some Taiwanese LED chipmakers have noted that, for rush orders, prices may rise by as much as 10%. For example, Genesis Photonics Inc of Southern Taiwan Science-Base Industrial Park (TNSIP) has already increased pricing its green LED epiwafers, while Huga Optotech Inc plans to raise prices by 5-10%. Tekcore Co Ltd and Formosa Epitaxy Inc (FOREPI) are also increasing their prices, while Epistar Corp is considering the possibility of a price hike, but has yet to make a decision, the sources note.

The LED-backlit LCD TV market is growing rapidly, with some vendors expecting LED models to account for 20-25% of the total LCD TV market in 2010.

However, some market observers are less optimistic, estimating a 15% market share for LED-backlit models in 2010. They have also warned of the possibility of oversupply of LEDs after chipmakers ramp up their new capacities in third-quarter, reports Digitimes.

However, LED chipmakers say that an oversupply may curb price increases and help to ease sapphire substrate shortages.

The chipmakers also say that average selling prices (ASPs) of entry-level to mid-range LEDs may drop as manufacturers are mostly increasing their high-end LED production to meet clients’ needs to upgrade the specifications of their LED-backlit TVs.

See related items:

Genesis increases prices for green LED epiwafers

Taiwanese LED makers expanding to meet backlighting demand

Epistar and Formosa Epitaxy hit new highs

LED-backlit TVs to reach 20% of 180m-unit LCD TV market in 2010

LED chip-maker Tekcore raising capital to fund MOCVD purchases

Search: Genesis Huga Tekcore FOREPI Epistar LED-backlighting LED LCD TV