Demand for TV Backlight Modules Has Been Decreasing

Demand for TV backlight modules (BLUs) has been decreasing. Competition is likely to become more fierce as Japan-based LED firm Nichia enters the market. Nichia has been focusing on LED products for mobile devices, tablet PCs and lighting. Cooperation between Nichia and Foxconn has been aggressive, hence industry watchers expect the cooperation to help Nichia build a vertically integrated supply chain for high-end TV BLUs. Nichia plans to supply BLUs for new TV models debuting in 2012. According to industry sources, the price of LED products for TV backlights has been dropping around 30-40% in recent months. Nichia plans to enter the market by providing BLUs for high-end TV products to Japan-based brands, which will likely threaten LED firms that have been supplying products to Japan-based customers. With superior technologies, Nichia has also been a supplier to Apple's iPad. Industry observers indicated the competition in LED BLUs for TVs has been intense, but Taiwan-based firms still have competitive advantages due to low costs. Nichia recently filed patent infringement lawsuits against Taiwan-based LED packaging houses Everlight. In response, Everlight issued a statement saying Nichia's patents are invalid. Source:digitimes. com