TV LED backlight penetration rate is saturating as LED backlight product price competition continues. Brand manufacturers are hoping to further drop already low direct-type LED TV prices by introducing flip-chip products. Chinese LED package manufactures, including Refond Optoelectronics, All-Ring Tech, and Lightening Optoelectronics, are hoping to catch up through advancing their technological capabilities.Taiwanese LED package manufactures are currently facing increased pressure from product advancement and competition.   

Penetration rate for LED TVs has already surpassed 95 percent in 2013. It is anticipated that LED backlight will completely replace CCFL in 2014. As penetration rate inches closer to saturation, brand manufacturers are looking to switch to low priced direct-type TVs in order to make their mark in the market. Advantages in wider beam angles and low packaging costs, it is anticipated that flip-chips will show up in new units in 2014. LED package manufactures’ backlight shipments will be effected as an increasing number of brand manufacturers introduce flip-chips into products, the speed of which industry insiders will keep a watchful eye on.

Aside from facing the encroaching competition spurred by flip-chip products, LED package manufacturers are facing returning competition pressure as Chinese package manufacturers strengthen. Refond Optoelectronics, All-Ring Tech, Lightening Optoelectronics, MTC Lighting, Dongshan Precision Manufacturing, Jufei Optoelectronics, Shineon Technology, and other Chinese package manufactures have became head of the pack, said an industry insider. An increasing proportion of TV OEMs are starting to use backlight products from Chinese LED package manufacturers. This means fierce price competition for Taiwanese LED package manufactures who are being blocked from potential supply chains by Chinese LED package manufacturers.