Market insiders in Taiwan recognize the LED TV backlight market entered seasonal adjustments in third quarter, but the adjustments are expected to impact LED manufacturers revenue in September, according to a China Times report. Taiwan’s LED chip manufacturers revenue were impacted by inventory adjustments from July to August 2014, while LED package manufacturers have kept up growth.

The LED package sector forecasted TV backlight Average Selling Price (ASP) would drop 2 to 3 percent after the sector underwent inventory adjustments in third quarter this year. However, price falls exceeded expectations, and has introduced new factors. Earlier, Epistar projected LED chip ASP would drop within 5 percent during 3Q14.

LED chip manufacturers revenue from July to August has reflected the inventory adjustment situation in 3Q14. Leading manufacturer Epistar’s revenue declined consecutively for two months, with some financial analysts even projecting the company’s revenue for third quarter will drop 10 percent. Genesis Photonics Inc. (GPI), FOREPI, and other Taiwanese LED chip manufacturers also reported declining revenues in August.

As for LED package manufacturers, Everlight and Lextar have implied at different events that their revenues climbed up during the months in 3Q14. Due to pricing issues, though, actual revenue growth in September might fall short of expectations.