Delta Electronics has begun producing power supply units (PSUs) for LED-backlit LCD TV vendors based in Japan, South Korea, Europe and Taiwan, according to company CEO Yancey Hai.

With improvements in the slimness of LED TVs, the importance of heat management and power supply technology has stepped into the spotlight. TV vendors, which typically produced PSUs in-house in the past, are looking externally for power supply solutions. Though the TV vendors currently only outsource 20-30% of their total needs, PSU orders should increase substantially in 2011, Hai said.

Gross margin for LED TV PSUs is about 20%, according to industry sources.

Delta expects its revenues and gross margin to continue to increase in the third quarter amid strong demand for notebook applications and industrial automation as well, the sources said.