Organization Estimates LED Oversupply to Linger in 2012

Taipei, Jan. 9, 2012 (CENS)--LEDinside, a market consulting firm tracking the LED industry, estimated oversupply will continue haunting the LED industry worldwide in the new year although demands from end markets are climbing.

The organization estimated that global supplies of LED chips at 174.0 billion units throughout 2011, around 35% higher than market demand. In December 2011 alone, excessive supply brought down sales by an average 10-15% at most LED makers worldwide.

The organization pointed out that most LED manufacturers are experiencing the worst times as many buyers are still withholding fresh procurement plans while burning off inventories. Also, fewer workdays in the Chinese New Year in January will affect sales for the month at the manufacturers in Chinese communities.

LEDinside's surveys show that many of the manufacturers, particularly those operating on small to medium scales, will likely leave the business before the Chinese New Year due to growingly intense competition. Some of them are still living on contracts for commercial lighting and government projects.

The organization estimated only those emphasizing sophisticate technologies and patent deployments can survive the competition this year.

The development of the LED industry in South Korea, the organization, is catching much attention following Samsung's inclusion of LED into its operation, not to mention Seoul Semiconductor's increased cross licensing with other patent holders.

Samsung is boosting self-content LED backlights in its LCD TVs and mobile phones.

Although 2011 demand for LCD TVs lit by LED backlight was not as strong as expected worldwide, LEDinside estimated the 2012 London Olympic Games would help fuel the demand.