LED TV penetration rate for 2013 has the possibility to reach 90% with Chinese television manufactures playing the key role. LEDinside predict that the 71.3% penetration rate for 2012 will reach 90% in 2013, raising the rate to 91.4%. China’s six major television brands in the LED Backlight market have a possibility of reaching 95% permeability in 2013. China’s television backlight companies have a high possibility of becoming strong competitors for Korean, Taiwanese, and Chinese packaging companies. In the past, supply chains for television backlighting have been dominated by Taiwanese and Korean packaging companies, but China has been hot on their heels. With improvements being made to packaging technology and holding superiority in price, it’s worth observing whether or not China will be able to replace Taiwan and Korea as the leader in the backlight market.

TV Backlight Penetration Expected to Rise 90% in 2013

It’s common knowledge that the LED TV market is over saturated. LEDinside predicts that the penetration rate will rise from 71.3% in 2012 to 91.4% in 2013. Television backlight remains LED manufacturer’s main source of revenue for 2013. Following improvements in the 2Q for television brand manufacturers, LED epitaxial and packaging factory performance will also see an increase. According to industry estimates, LED industry growth momentum in the 2Q as a whole is expected to be three times the standard.

The core of the TV backlight market has shifted to China. Within the next year, whether or not it will be shifted back is yet to be seen.

With China’s six major television brand named companies’ global delivery quantity continuing to rise, the Chinese market has become the core of the LED TV market. LEDinside estimates that the delivery quantity for these six companies will reach 54.6 million in 2013, with 95% being LED TVs. Chinese LED TVs are quickly catching up to large Korean manufacturers. With the end of the energy saving policy in China, the LED TV purchase situation is lacking in subsidies. Whether in the second half of 2013 LED TV’s buying power will be under attack is still unclear. And it remains uncertain whether the manufacturers' pull-in momentum will weaken is yet to be seen.

Chinese Packaging Manufacturers put Taiwanese Manufacturers on Edge

China has become the core of the LED TV market with supply chains entering into a qualitative changing process. In the past the supply chains were domineered by Korean and Taiwanese manufacturers. However following China becoming the heart of the LED TV market, Chinese packaging companies are making a clear rush for the lead through technology advancements and price dominance. Such companies include Refond, AMTC, Dongshan Precision Manufacturing and more who are making their way into the television backlight supply chain. Korean based packaging companies have already begun to lose their importance in the supply chain, but Taiwanese factories such as Everlight, Unity Opto, and Lextar, they are all actively sticking with the television backlighting supply chain. From a technological standpoint, Chinese manufacturers still lag behind that of Taiwan and Korean. However, LEDinside predicts that if Chinese manufacturers speed up their technology innovation, it is possible for them to consume 30% of the LED TV backlight market this year.