China-based LED chip packaging houses have been extending their presence from small-size LED BLUs (backlight units) to large-size models in the China market, posing potential competitive pressure on Taiwan-based fellow makers in the China market of LED BLUs of TVs, according to industry sources in Taiwan. Taiwan-based LED packagers including Everlight Electronics, Unity Opto Technology and Lextar Electronics have become main suppliers of large-size LED BLUs in China through strategic cooperation with China-based panel makers and/or system assemblers, the sources indicated. However, China-based makers have increasingly supplied large-size LED BLUs for China-based vendors of LCD monitors and notebooks, the sources noted. Some China-based makers have entered the supply chain of LCD TV vendors and are likely to compete with Taiwan-based makers for supplying LED BLUs used in LCD TVs in 2014, the sources pointed out. With Shenzhen Refond Optoelectronics and Shenzhen Jufei Optoelectronics being major China-based LED packaging houses, China-based companies together shared 20% of the China LED BLU market in 2012, the sources indicated. Many of the China-based makers will expand LED BLU capacity in 2013 and the total monthly capacity is expected to reach one billion chips, the sources noted. Unity Opto indicated that global LED backlight penetration of LCD TVs will increase from 70% in 2012 to 90% in 2013 and Taiwan-based makers are expected to shift operational focus from LED backlight to LED lighting in 2014 to minimize potential negative impact of China-based fellow makers' competition. |
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Local Suppliers Of TV LED BLU Threaten Taiwan's Dominance In