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While the third quarter of each year is traditionally a peak season for LED makers, this year seasonality is not expected to kick in, with demand for various LED devices turning weak, according to industry sources.
Due to components shortage and COVID lockdowns in China, LED firm Ennostar had already downward adjusted second-quarter 2022 revenue to a level lower than that for the first quarter, the sources said.
Samsung Electronics, LG Electronics and Japan-based vendors originally planned to launch COB (chip on board) miniLED-backlit LCD TVs in second-half 2022, but are likely to defer the launch amid weakening demand, the sources indicated, adding Samsung shipped 1 -1.5 million miniLED-backlit LCD TVs in 2021 and aimed to ship 3.0-3.5 million units in 2022, but has lowered the target shipments to about three million, the sources said.
Demand for LED horticultural lighting from North Europe and Russia has slowed down and that for car-use AlGaInP LED devices has decreased due to shortage of automotive components / materials, the sources noted.
Demand for LED devices used in consumer electronics has also decreased along with shrinking demand for consumer electronics, the sources said. For example, demand for photo couplers was robust in 2021 but has become relatively weak at present.
Among Taiwan-based LED makers, Tyntek currently utilizes about 70% of production capacity for LED chips and 80-90% for Si-based sensor chips, while LED packaging service providers Bright LED Electronics and Harvatek are conservative about business operation in the second half of 2022 and think that second-half 2022 revenues may decrease from the first half.