LED pricing declined 5-9% in first-quarter 2014 as distribution channel inventory levels gradually returned to norm and manufacturers stocked up before the China May Day holidays, according to LEDinside.

Looking ahead, the firm added that mid-power 5630 LEDs will remain mainstream for various manufacturers in 2014. The 3030 LED, 1W and above, is also expected to be the mainstream in the industry. Capitalizing on this, Korea-based manufacturers including Seoul Semiconductor and LG Innotek, expanded production capacity in the first quarter. However, an increasing number of manufacturers have become optimistic about COB market development in 2014, including CREE and Seoul Semiconductor, who have already launched several COB products, the firm added.

In terms of backlighting applications, Ultra HD TV shipments increased 14% on quarter in first-quarter 2014, and there has been LED supply shortages for Ultra HD TVs. The global Ultra HD TV penetration rate will rise from 1% in 2013 to 8.1% in 2014, and TV shipment volumes are anticipated to be between 16-18 million sets in 2014, said LEDinside.