Taiwan’s LED-lit TV Makers Benefit from Mainland Authorities’ Subsidization Programs

Benefiting from mainland China’s TV makers vigorously building up inventories for the upcoming high season, Taiwan’s LED makers Epistar, Unity Opto, Lextar, and I-Chiun Precision Industry Co., Ltd. have been inundated in contracts.

The mainland’s top six color TV makers are energetically promoting LED-lit TVs in anticipation of lucrative demands from the mainland authorities’ subsidization programs, which are designed to further boost LED-lit TV penetration in the Chinese mainland to 80% from current 70%.

Lextar increases production capacity utilization by 5-10%
Lextar executives said the company’s production capacity utilization has increased 5-10% so far in Q3 from Q2 to nearly full level. They said contracts for TV backlights have obviously increased and capacity for making LED lighting has stayed tight.

I-Chiun Chairman W.S. Zhou pointed out that the company shipped 500,000 direct back-lit LED modules to the mainland’s TV makers in July and close to one million modules in August. He estimated the shipments at over one million modules for September.

Zhou claimed that the company’s LED backlights save 18% more energy, above the 17% required by the subsidization program.

Epistar’s orders from the mainland are brisker in the second half

Epistar executives pointed out that TV backlight orders for the company’s third-quarter capacity are greater than expected and orders from the mainland are brisker in the second half than in the first half this year. They said the mainland’s color-TV makers have introduced low-cost LED-lit TVs, which are close to CCFL-lit TVs in cost.

Unity Opto receives increasing orders from mainland

Unity Opto Chairman Alpha Wu pointed out that orders from the mainland have increased sharply, adding around NT$100 million (US$3.3 million at US$1: NT$30) to the company’s monthly revenue.

Mainland’s LED-lit TV penetration is likely to boost during Moon Festival holidays and mainland’s Oct. 1 national holidays
According to industry executives, the mainland’s top six color-TV makers had boosted the mainland’s LED-lit TV penetration to around 70.5% throughout the first seven months this year. The estimated shopping spree during the upcoming Moon Festival holidays and the mainland’s Oct. 1 national holidays are likely to boost the penetration to 80%.

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