Taiwan's LED Makers See Stronger Sales in Lighting Than Backlight

Taipei, Aug. 19, 2011 (CENS)--In July alone, lighting market brought Taiwan's LED (light emitting diode) makers stronger business than TV backlight market, according to market research firm LEDinside.

The research organization pointed out that global consumption of LCD (liquid crystal display) TV lit by LED backlights has been fragile mostly thanks to a slow economic recovery compounded by the March 11 Japanese earthquake, Greek national debt crisis, spiking oil price and festering global inflation.

Weak demands have prompted market research organizations such as WitsView and TrendForce to cut down 2011 goals of the TV shipments to 2.01-2.03 millions. In the third quarter alone, output capacity utilization rate averages at 70-75% for Taiwan's LCD panel manufacturers and 80-85% for South Korean manufacturers.

Sales pictures of LED makers counting on lighting markets were quite different. Lextar Electronics Corp. and Edison Opto Corp. reported slower sales reduction paces than their backlight peers in July. Drumming up sales mostly in markets of LED lights, small- and medium-sized backlights, and laser LEDs, Lite-On Technology Corp. had revenue of NT$1.2 billion (US$43 million at US$1:NT$29) in July. Streaming orders from auto-lamp and streetlight makers sent High Power Opto Inc.'s July revenue soaring 65% from June.

Taiwanese and South Korean LED makers surveyed by LEDinside pointed out lighting products will account for 25-35% of their product lines in the second half this year.

According to LEDinside, a weak TV market has compelled LED chipmakers to brace for lukewarm business that is estimated to last into the first quarter of next year.

Their industry peers contracted by tablet PC makers and lighting manufacturers are expected to have better results.

In July, Taiwan's publicly held LED makers turned out a total of NT$8.6 billion (US$298 million) in revenue, contracting 6.35% from a month earlier and 18.8% from the same month of last year.

A wild card, LEDinside noted, is the affect of the subsidy cuts initiated by mainland China's local governments on LED lamp consumptions.