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Taiwan's LED and backlight suppliers to benefit from larger-sized LCD TV boom.

Taipei, Nov. 29, 2012 (CENS) -- Taiwan's LEDs and LED backlight suppliers are likely to gain steam from increasing popularity of larger-sized LED-backlit LCD TVs in the years to come, according to market observers.

According to a report issued by the market researcher, LEDinside, a penetration rate of LED-backlit models in the global market for LCD TVs is expected to mount up to 90% in 2013 from 73% this year thanks to downward spiral of LED prices.

LEDinside noted that global sales of LCD TVs with conventional CCFLs (cold cathode fluorescent lamps) as the backlight source will slow down in the coming years because development of such products has hit its ceiling , leaving little room for suppliers to cut prices to trigger consumer demand.

In comparison, the market for LED-backlit models shows huge growth potential, mostly thanks to advancement of direct illumination-type backlight technologies, which allows manufacturers to cut up to 30% of LED chips used in LED-backlit models to further lower production costs. LED-backlit LCD TVs can be produced at costs almost equal to those of CCFL models in 2013, the researcher forecast.

More notable is that, LED inside furthered, the average size of LED-backlit LCD TVs sold worldwide is estimated to trend upward to 40.1 inches in 2013 from 38.6 inches seen in 2012.

Plus, the market researcher analyzes that persistently diving quotations of LED backlights will also help to speed up development of larger-sized LED-backlit LCD TVs, and therefore foresees that shipment of models with screen sizes of between 50 and 60 inches will steadily increase year by year, with 70-inch models to be targeted at the top-end segment.

As the larger screen size a LED-backlit LCD TV has, the more LED chips are needed as the backlight source for production of the product, Taiwanese LED and LED backlight will hopefully see their shipment volume to surge in the coming years.

Institutional investors pointed out that among Taiwanese LED suppliers, Epistar Corp., Formosa Epitaxial Inc., Genesis Photonics Inc., Everlight Electronics Co., Ltd., Lextar Electronics Corp. and Unity Opto Technology Co. are most likely to enjoy the lucrative business opportunities.
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Author:Chuang, Steve
Publication:The Taiwan Economic News
Geographic Code:9TAIW
Date:Nov 29, 2012
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