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Unity Opto's Backlighting-LEDs to Tap Into BOE OT's Supply Chain

Mar 03, 2011 | By Quincy Liang

Taipei, March 3, 2011 (CENS)--Unity Opto Technology Co., Ltd., a LED maker in Taiwan, is expected to become a major supplier of light-emitting diodes (LEDs) for backlight modules to Beijing BOE Optoelectronics Technology (BOE OT), a Chinese thin film transistor-liquid crystal display (TFT-LCD) panel maker, according to Chinese-language economic daily newspaper Economic Daily News (EDN).

Unity Opto will set up a new plant in Beijing in April, with the new LED facility expected to have a monthly capacity of some 200 million LEDs by the end of 2011.

As a major supplier of backlighting LEDs to Samsung and LG's TV panels, Unity Opto is the largest backlighting-LED maker in Taiwan and began supplying to Sony and Sharp of Japan early this year.

Industry sources said that BOE OT's 8G TFT-LCD panel plant is scheduled to kick try and mass production in June and October, respectively. In addition to the company's existing 6G in Hefei, Anhui Province of China, BOE OT is also planning to set up an 8.5G plant.

Unity Opto has also begun shipping LEDs to another major Chinese TFT-LCD panel maker TCL.

In a LED-backlighting LCD TV, the LEDs account for only 3% to 5% and the tolerable defect is only 10 PPM (parts per million), industry sources said, so panel makers would not easily change their LED suppliers. That's why Unity Opto has been consolidating its leading position of LCD-TV LED suppliers in Taiwan, which is not easily replaced by other rivals such as Everlight Electronics Co., Ltd. or Lite-On Technology.

The penetration of LED TVs is expected to more than triple to 50% in 2011 from about 15% last year. So, some institutional investors estimate that Unity Opto's revenue will grow by at least 70%.

Unity Opto's chairman C. H. Wu said that he does not worry about the prices of backlighting-use LEDs too much because only few suppliers can meet the stringent specification requirements from LED TVs to become qualified competitors in the arena.


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