Lite-On Technology is confident that about 15% of new notebooks will feature LED backlights, according to company CEO KC Terng, despite that some industry players believe the penetration rate of LED-backlit notebooks will be lower than previously expected in the short term.

Terng noted that panel customers are still urging Lite-On for LED shipments, implying that demand from the notebook segment is still solid. He anticipated that about 15% of new notebooks shipped in 2008 will be LED backlit, adding that substantial market growth should be seen in 2009.

Terng revealed that shipments to a single customer averages at about 7-8 million units and the company currently has two customers in the LED-backlit notebook segment, with sales contribution from each exceeding NT$25 million (US$794,050) per month.

Terng commented that the aggressive expansion by fellow LED makers in 2008 is a negative factor in the near term, since massive capacity expansion drags down average selling prices (ASPs). But Lite-On is conservative over its own expansion and will not be seriously impacted by the industry trend, he emphasized.

However, given that leading player Nichia has taken an aggressive path in its deployment in top-view LEDs, Terng said Lite-On is seeing ASP pressure in this segment and has adjusted its strategy by pursuing other orders.

In related news, Lite-On has also approved plans to invest US$10 million at US-based high-performance LED (HPLED) maker SemiLEDs to build a strategic alliance. Terng pointed out that the alliance frees Lite-On from any patent issues related to HPLEDs as the metallo-organic chemical vapor deposition (MOCVD) equipment that SemiLEDs uses is different to that of its rivals.