Samsung Said to Buy Taiwan's LEDs for TV Backlights

Taiwan's industry executives say that Samsung has recently placed orders via its contracted LED packagers with Taiwan's LED chipmakers for flip-chip LEDs for TV backlights.

Samsung began integrating flip-chip LEDs into backlights for its direct back-lit LCD TVs last year, reportedly becoming the world's first TV maker to employ this type of chips for backlights.

Taiwan's first-tier chipmakers, including Epistar Corp., Formosa Epitaxy Inc. (FOREPI), and Genesis Photonics Inc., have reportedly received the orders and expected to land more.

Since Epistar, currently the world's No.1 blue-chip maker by production capacity, has kept business tie with Samsung, the company is naturally considered by local industry executives to be chosen as supplier by Samsung. FOREPI said last year that it had its samples of flip-chip LED verified at Samsung. Genesis has declined to comment.

Samsung mainly promoted direct back-lit TVs last year, with the products accounting for 80% of its LCD TV product line; and the percentage is expected to further climb this year.

Taiwan's industry executives point out that Samsung has played a pioneering role in adopting LED into backlights. It integrated the diodes into handset backlights in 2001 and LCD TV backlights in 2009.

Capital-equipment suppliers estimate supply-demand of backlight LEDs to balance by the end of this or early next year because of slowing expansions by mainland China's suppliers, which are blamed for upsetting  market order with underselling. (KL)