Demand for low-cost direct-lit backlights attracts LED package factory layout

LED packagers are working hard to improve the competitiveness of low- and medium-power products. The shipment of low-cost direct-lit backlight modules will increase significantly in 2014, which is expected to drive the demand for low- and medium-power LEDs to rise significantly, and has attracted the expansion of LED packaging factories.
Wang Zhongwei, the chairman of the board of directors of the company, said that the production capacity of the eight-generation and above production lines of each panel factory will be opened in 2014, and mass production of larger-sized panels to digest large capacity will help stimulate large-size backlight modules. Demand is rising, and the LED packaging plant is paying considerable revenue.

Wang Zhongwei further pointed out that since the low-cost direct-lit backlight module will still be the mainstream of the LEDTV market in 2014, the backlight module factories including Ruiyi and Zhongqiang Optoelectronics are all committed to improving the shipment capacity of low-cost direct-lit backlight solutions. Therefore, the LED packaging factories such as Yiguang, Longda, Hongqi and Dongbei were encouraged to actively attack the market for medium and low power LED packages.

However, compared with the edge-lit backlight module, the low-cost direct-type backlight uses fewer LEDs, and the unit price of the low- and medium-power LEDs continues to fall, so the LED packaging factory is actively mastering the largest amount of orders, and Reduce production costs to compensate for the impact of the decline in the use of low- and medium-power LEDs.

Taking Yiguang as an example, in addition to improving the existing production equipment to increase the manufacturing speed, the company also increased the proportion of LED packages developed by the Epoxy Molding Compound (EMC) lead frame (LeadFrame).
It is understood that, unlike traditional thermoplastic plastic (PPA) and ceramic lead frame, EMC lead frame has better heat dissipation, high integration, can carry high current and small volume, etc., attracting more and more operators to invest in EMC wire. The development of the frame led to a gradual decline in its price. Wang Zhongwei revealed that at present, Everlight has up to 30 medium and low power package products for LEDTV backlights, which are produced by EMC lead frame.

Wang Zhongwei expects that although the low-cost direct-type and thin-type low-cost direct-lit LEDTV will reduce the number of low- and medium-power LEDs, after the larger-size LEDTVs will come out next year, there will be an opportunity to stimulate the demand for LED backlight modules. In this way, the company's backlight product line in 2014 is expected to maintain the same 40% of the overall revenue, and will continue to be the largest application area of revenue contribution.

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