In order to support operations and revenues during the LED weak season in the fourth quarter of 2010, backlight unit (BLU) makers have started to provide price-cut promotions for small- to medium-size BLUs to grab orders. Prices have dropped about 5-10% in the fourth quarter.

Overall LED ASP are expected to fall more than 5% in the fourth quarter, and LED players will continue to feel pressure to reduce prices in the first quarter of 2011.

LED-backlit TV market share is expected to exceed 50% of the total LCD TV market in 2011, and prices for LED chips will drop quickly. LED chip prices are expected to drop by 30% in the next two quarters, market sources noted.

LED players indicated that although some LED packaging houses started to see revenue growth in November, overall demand for TV backlighting remains weak. Overall revenues in the fourth quarter of 2010 are expected to drop 15-20% sequentially as small- to medium-size BLU business enters the weak season, while demand growth for new models in 2011 is slow. Significant growth in revenues is not expected to start until the second quarter of 2011.

LED chipmaker Genesis Photonics has posted revenues of NT$340.71 million (US$11.32 million) for November, up 2.7% sequentially and 183.65% on year. Fellow LED chipmaker Tyntek saw its November revenues rise 6.67% sequentially and 0.04% on year to NT$256 million.