Vertically integrated Taiwanese LED manufacturer Lextar Electronics Corp. has maintained an utilization rate of 80% and order visibility of about 1-1.5 months. Affected by mediocre demands for large sized backlight orders in 3Q13, LED manufacturers are closely paying attention to potential orders from U.S. and Europe Christmas season and stock up prior to the Chinese Lunar New Year. Demands are much better for direct-type LED TV and small/mid sized backlight, according to Lextar. In comparison side-view type LED TV and notebook backlight demands remained low.
The overall LED TV 3Q backlight orders were affected by ending China’s Home Appliance Subsidiary program. Lextar pointed out, though, decline in side-view backlight demands was more evident, while shipments for direct-type LED remained stable. However, as direct-type LED shipments accounted only a small proportion, it has been unable to make up for falling backlit-LED TV demands. On the other hand, the fast rise of tablets is eroding the notebook market, which has also affected Lextar’s notebook backlight revenues.
In addition, Lextar pointed out small/mid sized backlight module products were well received by the market. The company has recently entered the Japanese smartphone supply chain. Chinese white box phone and tablet clients have also started to introduce this product into new product designs, which is expected to increase orders in 4Q13.
From overall operations, Lextar’s side-view type LED TV and notebook backlight demands remained low. Demands for direct-type LED TV were much better, though, and with continual growth for LED lighting demands, Lextar’s overall utilization rate was kept at 80%, with order visibility of 1-1.5 months.
