Taiwan-Based LED Firms Accumulated Financial Capital of NT$13.8 Billion

Taiwan-based LED firms accumulated financial capital of NT$13.8 billion (US$460 million) in 2011, down 80% compared to NT$76.2 billion in 2010. Industry sources believe low demand will continue into second-quarter 2012. Taiwan-based LED firms continue to expand the lighting business to replace the loss of revenues from LED TV backlights. The lack of demand in LED TV has been inducing Taiwan-based LED firms to shift focus to LED lightings. The LED firms have also been introducing own-brand LED lighting products to ensure long-term growth. Demand for LED TV backlight units (BLUs) is likely to remain low throughout first-quarter 2012, and a stagnating market condition for LED chip demand from TV firms is expected to last until second-quarter 2012. To compete with CCFL-backlit TVs, TV firms have been introducing direct-lit LED TVs, a technology that reduces the number of LED chips to 45-60 units per TV. Taiwan-based LED firms have also been working with partners to expand the LED lighting market. Epistar believes sales from LED lightings in 2012 will account for 30% of its total revenues. Lextar has been supplying products to international firms such as Philips and Osram. The firm anticipates revenues from LED lightings to account for 50% of its total revenues in 2012. Source: www.digitimes.com