With China’s energy efficiency subsidy coming to a close, demand for LED backlight at the end of 2Q and beginning of 3Q slowed. The upcoming National Day holiday orders also had effect on 3Q LED backlight delivery performance. China is expected to promote another energy subsidy that will be stricter towards efficiency performance in the near future, with the possibility of drastically raising the EEI (Energy Efficiency Index) from 1.7 and 1.9. LED manufacturers have also aggressively begun placement strategies for high efficiency direct lit TVs.