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Lextar Electronics, in view of traditional peak demand for LED backlighting and continual growth in LED lighting, expects 2017 operations to peak in the third quarter, according to company chairman and CEO David Su.
While demand for LED backlighting for large-size LCD TVs is increasing, total demand from LCD TVs of all sizes is approaching saturation and the average number of LED chips used in a backlight unit is decreasing, Su said. Thus, global demand for LED TV backlighting will remain unchanged and prices will be stable, Su noted.
Global demand for LED lighting keeps growing but competition for general LED lighting products has been intense, Su said. To avoid price competition, Lextar has shifted focus to LED lamps and value-added LED lighting modules, Su indicated. For example, Lextar has developed Human Centric smart LED lighting products, Su noted.
Currently, LED backlighting accounts for 50-60% of consolidated revenues, LED lighting 20-30%, and LED automotive lighting, infrared (IR) and ultraviolet (UV) LED the remaining. In 2016, Lextar had a global market share of 20% for notebook LED backlighting and 10% for TV LED backlighting. Lextar has offered thin backlight units of 0.3mm in thickness and dual-color temperature LED flashes for smartphones.
While operations in the first quarter of 2017 almost broke even with tiny net profit of NT$110,000 (US$3,620), Lextar expects the whole year to swing from a net loss of NT$728 million in 2016 to profitability through continued improvements in product mix.
Lextar Electronics chairman and CEO David Su
Photo: Fu Shih-min, Digitimes, June 2017
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