Demand for TV-use LED backlight units (BLUs) has been strong in first-quarter 2020, but will slip below the historical average in the following quarter, thanks to the postponement of the Tokyo Olympics, according to industry sources.
TV vendors originally expected the Olympic Games to stimulate replacement demand for large-size TVs, and were increasing output in preparations for second-quarter shipments, boosting demand for LED BLUs, the sources said.
The postponement of the event due to the coronavirus pandemic will now chill demand for TV-use BLUs in second-quarter 2020, the sources noted.
But increasing demand for remote working and learning has pushed up shipments for notebooks and tablets and corresponding BLUs, the sources indicated, adding that BLUs shipments for notebooks and tablets have been scheduled until May 2020.
For LED wafer and chip maker Epistar, LEDs for notebook- and tablet-use BLUs take up over 10% of revenues for all backlighting applications, which account for 25% of consolidated revenues.
LED packaging service provider Everlight Electronics has seen rising revenue proportion for BLUs used in notebooks and tablets.
Everlight posted consolidated revenues of NT$20.967 billion (US$694 million), gross margin of 24.46%, net operating profit of NT$835.2 million, net profit of NT$822.2 million and net EPS of NT$1.86 for 2019. The company has decided to distribute a cash dividend per share of NT$1.40 for the year.