I-Chiun's shipments of backlight modules used in direct-type LED TVs were down in May 2013 largely due to a slowdown in TV demand in the China market, according to industry sources.
Shipments reached between 600,000-700,000 units in May, down from 800,000-900,000 units in April, which the sources believe is largely due to a slowdown in TV purchasing in the China market as a result of the local government discontinuing subsidies for TV purchases.
However, May and June of each year are typically slow periods for TV purchases, the sources said, adding that I-Chiuns's shipments are expected to pick up in July.
The sources added that I-Chiun currently only has order visibility for about 2-3 weeks and that its customers are currently readjusting their orders.
I-Chiun has also reportedly decided to inject a US$8 million capital increase into a China-based subsidiary in order to expand LED lead frame, LCD backlighting module component, and direct-type TV backlighting module production in order to meet growing demand for thinner TVs.
About 20% of the company's revenues in 2012 came from direct-type LED TV backlighting shipments, but that percentage is likely to increase due to the capital increase, the sources said.
