LED epitaxial wafer and chip maker Epistar expects its consolidated revenues for third-quarter 2013 to remain unchanged or decrease slightly on quarter, according to company chairman Lee Biing-jye.
Demand for TV LED backlights in the third quarter has significantly dropped sequentially mainly because the China government ended subsidies for energy-saving TVs in the second quarter, Lee said. As a result, Epistar saw large decreases in July and August LED chip shipments for TV backlights, Lee indicated.
As LED penetration in TV backlights has risen to nearly 80%, there is not much room for further growth, Lee said. However, Ultra HD TVs will help increase demand for LED chips because Ultra HD models require 25-30% higher brightness and 10-20% more LED chips, Lee indicated.
Currently, LCD TV backlights account for 45-50% of Epistar's consolidated revenues, LED lighting for 25-30%, LED displays about 10% and automotive LED applications less than 10%, Lee said. For automotive LEDs, Epistar has entered the supply chains of Europe- and Asia-based car makers and expects to begin shipments in 2014, Lee said.
