According to industry sources in Taiwan, Demand for LED backlighting used in small-and-medium-size panels for applications such as low-cost PCs and digital photo frames are expected to increase by 20-30% in 2008.

The cost of LED backlighting in the small- to medium-size segments is currently almost the same as that of cold cathode fluorescent lamp (CCFL) backlighting, according to sources at Taiwan-based LED makers Everlight and Unity Opto. The penetration rate of LED backlighting used in 2.5-to-7-inch panels is projected to increase from 53% in 2007 to 75%~80% in 2008, the sources added.

If a typical 7-inch panel requires 15~20 LEDs, panel makers such as Hannstar Display and Chunghwa Picture Tubes (CPT) are expected each to need 400-500 million LEDs this year, according to sources at LED packaging houses.

The sources noted that though the average selling price of LED's used in LED backlighting is expected to go down 20% in 2008, increases in production capacity and yield rates should compensate for the decrease in prices.