Taipei, June 21, 2007 (CENS)--Everlight Electronics Co., Ltd., a Taiwan-based supplier of LED backlights, has garnered orders from Apple for backlight modules for the next-generation iPhones, and is scheduled to start delivery at the beginning of next year, according to company sources.

With LED backlights becoming popular, such domestic LED makers as Everlight, Bright Led Electronics Corp., and Unity Opto Technology Co., Ltd. have spent up to NT$1.5 billion in capital expenditure to expand production capacity. According to LED makers, such products are expected to keep booming for at least two years.

Surprisingly, digital photo frames are emerging as this year`s hottest products, which, together with GPS devices and mobile phones, have boosted demand for backlights for 7-inch display panels, and led to supply shortage of backlights for small-sized display panels in the market. Moreover, after U.S.`s leading notebook PC brand, Dell, announced discontinuing use of cold cathode fluorescent lamps (CCFLs) in notebook PCs beginning this May, LED makers are poised to expand capacity of backlights to meet such demand.

As market demand for backlights for 10-inch and below display panels keeps going strong, Everlight, which has seen its supply of such products become tight, decided to expand production capacity, and therefore has spent capital expenditure of NT$1.5 billion contracting one to two suppliers this year. This makes the company`s production capacity of backlights for small- and medium-sized display panels grow 50%, according to the company.

In fact, Everlight already installed new manufacturing machines in the second quarter of this year due partly to expected orders in the third quarter, and partly to its orders from Apple for backlights.

Incidentally, Unity Opto is gung-ho to concentrate production of LED backlights for 7-inch display panel for notebook PCs, monitors and LCD TVs, having invested NT$300 million in new manufacturing machines, and plans to further increase the figure by NT$500-600 million in the second half of this year. The company projects its sales revenue to break NT$300 million by June, and to continually hit new highs every month through the fourth quarter of this year.

Meanwhile, Bright Led, which specializes in LED lamps and streetlamps, has moved to seek cooperation with world-class Korean suppliers of backlights, and its production capacity has been booked through the third quarter of this year. The company has spent between NT$800 million and NT$1 billion buying new manufacturing machines.

(by Steve Chuang)