Despite AU Optronics (AUO)'s optimism about the penetration rate of LED backlighting for notebook applications in 2008, many Taiwan LED players are conservative regarding such penetration rate growth. As the world becomes more concerned about the economic outlook for the year, and the price difference between LED and CCFL lighting sources in backlight units (BLUs) has not narrowed as much as had been expected, the 20% penetration rate forecasted by AUO may not be achieved, the LED players predicted, while revising their own goal to below 10%.

LED players pointed out that the penetration rate of LED backlit notebooks was only 3-5% last year, and growth was limited in the first half of this year. Though growth is expected in the second half of this year, order visibility will not clear up until the four quarter. LED players did note that LED BLU shipments for notebook applications will top out in the fourth quarter, with estimates indicating shipments will be 1.5-1.8 times greater than they were in the first quarter.

In addition, while notebooks that use LED BLUs are becoming more popular, the main BLU providers are from Japan, added the market sources.