Formosa Epitaxy and Unity Opto would shift their focus to Chinese LED TV market in future

LED chip maker Formosa Epitaxy and chip packaging house Unity Opto Technology would direct their focus to China's TV market for future growth, affected from South Korea TV vendors raising their own LED capacity.

Formosa Epitaxy introduced that added about 4 new Chinese first-tier TV vendors, and the demand of large-size backlight applications has increased, but the small- to medium-size sector was off season. The company estimated November revenues were about NT$400 million (US$13.14 million), and more sales growth should appear in March after Lunar New Year.

Industry sources expected that LED-backlit TV’s market penetration would go up to 45-50% in China in 2011, compared to 30% in 4Q10.

Unity Opto thought November revenues would be more than NT$550 million result from stronger TV demand. It was estimated that the company 4Q revenues would decrease 6-7% sequentially; down to about NT$1.78 billion and gross margin would decline to 20% on decreased ASP, with a share of NT$0.6. The totaled revenues for 2010 would reach NT$6.9 billion.

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