LED lights have become the mainstream of LCD backlights, and this situation has led to major investment in LED manufacturers. DisplaySearch predicts the short-term development of the backlight market, the shortage of LED supply should be quickly eliminated, and there may even be an oversupply of LEDs in the future.
According to Display Search's latest LED backlight research report, the shipment of LED backlight panels for large-size LCD panels in 2011 will exceed the shipment of CCFL backlight panels, which is expected to be adopted by 2013. LED backlight panel penetration will be as high as 74%, and shipments in 2015 will grow to 770 million.
LED backlights have also rapidly penetrated and spread on LCD TVs, personal computers and LCD monitors. According to the understanding, South Korea's Samsung Electronics (Samsung) is actively increasing the proportion of LED production investment of its subsidiary Samsung LED, and another Korean manufacturer LG has begun to strengthen the LED backlight production capacity of LCD. In other words, LCD panel manufacturers continue to push the vertical integration of LED backlight panels has become a trend. In addition, old LED manufacturers such as Nichia Chemicals are also increasing their investment proportions. Therefore, DisplaySearch estimates that the shortage of LED supply will soon be eliminated, and there will even be an oversupply situation.
DisplaySearch's director of flat-panel display products, Uno, pointed out that Samsung LED's blue LED backlight production capacity will reach 467 million monthly capacity in 2009, and will reach 1.33 billion in 2010. And if Samsung put all of the MOCVD equipment introduced by the company in 2009 (reported to be 150 units) into mass production, it is estimated that the monthly production of wafers can reach 2 billion.
In addition, after increasing its production capacity, Nichia's monthly production capacity of blue LED will increase from 1.33 billion in 2009 to 3.67 billion. OptoTech, which has a partnership with Nichia, estimates that its monthly production capacity will double in 2010, from 1.33 billion in 2009 to 3 billion. As the relevant manufacturers have increased the production capacity of blue LEDs, the overall production capacity has exceeded the estimated LED demand of 2010 by DisplaySearch by about 100 billion. Therefore, not only will the demand for LEDs disappear soon, but there may even be situations of oversupply.
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