Lee Biing-jye, chairman of Taiwan-based LED chipmaker Epistar, has noted the firm's order visibility for TV LED backlight units (BLU) is clear to August. Orders in September will depend on demand in China to gauge consumer demand during the 2013 Lunar New Year.
David Su, chairman of Lextar, believes market conditions in the third quarter will heat up as it is the traditional boom season. Su believes capacity utilization rates will likely increase.
Lee noted that LED TV BLU demand in 2012 from international firms will likely come to an end in August. This is because most international TV firms are launching new products in September-October for the year end boom season in Europe and the US.
TV BLUs account for 50% of total revenues at Epistar and customers are mainly from South Korea and Japan. Despite the fact that LED TV penetration is expected to reach 70% in 2012, the industry has been concerned about economic downturns in Europe and the US affecting demand.
Lee added that the China government has been providing LED lighting subsidies. Nevertheless, it will be difficult for Taiwan-based firms to obtain lighting orders in China.
Lee Biing-jye, chairman of Epistar
