LED market demand growth is expected to drive product price growth

According to news from LED packaging manufacturers, the price of upstream LED chips and epitaxial wafers will rise rapidly due to strong market demand. Therefore, this may push the price of LED backlight products to increase by 5%-10%.

Some LED chip makers say that if the company receives a urgent order, then the price of LED chips may rise by as much as 10%.

According to sources, Taiwanese LED chip maker Genesis Photonics has increased the price of its green LED epitaxial wafers, while Huga Optotech plans to increase its epitaxial wafer growth price by 5%-10 %.

Sources pointed out that Taiwan's LED chip makers Tekcore and FOREPI are both planning to increase their product prices, while Epistar is considering the possibility of a substantial price increase, but has yet to make a decision.

The LED-backlit LCD TV market is growing rapidly. At the same time, some TV manufacturers expect that in 2010, LED LCD TV market share will account for 20-25% of the global LCD TV market share.

However, not all market observers are optimistic about this. Some observers believe that in 2010, LED backlight products will occupy 15% of the entire LCD market. Observers predict that after the third quarter of 2010, LED chip manufacturers began to increase production capacity, which may lead to oversupply of LED products.

LED chip makers say that oversupply of LED products may inhibit product prices from rising too fast and help solve the shortage of sapphire substrates.

LED chip makers also said that the average selling price of primary and medium LED products may also decline as manufacturers are working to increase the production of high-end LED products to meet customer demand for technology upgrades for LED-backlit LCD TVs.

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