Capacity utilization in the LED industry has been lower than expected in 2011, and the fourth quarter is likely to be moderate, said Robert Yeh, chairman of Everlight. Growth of TV backlight modules (BLUs) in 2012 is unlikely, but as growth for LED lighting products will be apparent, Everlight has plans to expand operations in China, according to Yeh.

The Taiwan-based LED chipmaker revealed that it has recently received rush orders for TV BLU applications, with results llikely to reflect on October revenues.

With LED brightness increasing, the TV BLUs will use less and less chips in the future, added Yeh. Hence the volume of LED chips used in TV BLUs in 2012 will continue to show declines. In addition, Korea-based firms have been setting the standards for TV BLU products leaving Taiwan-based counterparts with little control. Therefore the prospect of market development in TV BLUs for Taiwan-based LED firms is more bleak, said Yeh.

Yeh indicated that the fourth quarter is likely to show slight growth, but the overall performance will likely be satisfactory only.

Source:digitimes