Innolux Teams Up With Nichia to Tap LED Monitor Market

Taipei, Sept. 23, 2009 (CENS)--The Taiwan-based Innolux Display Corp., a supplier of display panels and monitors, has allied with Japan's Nichia, a globally leading LED (light emitting diode) maker, in a bid to lead the industry of LED monitors by shipment volume, according to company sources.

The world's big three makers of LED monitors are TPV Technology Ltd., Innolux and Qisda Corporation presently, with global large-sized brands as HP and Dell usually tending to place their contract orders with the three makers evenly to avoid emergence of a single monopolist in the industry.

The current situation is unfavorable to contract suppliers' business growth, prompting Innolux's decision to cooperate with Nichia. The alliance allows Innolux to lower its production costs of LED monitors with sufficient supply of more economical LED chips secured by the partner. On the other hand, Nichia is also expected to benefit from its growing influence on the global market for LED backlights through the cooperation.

The strategy obviously works, as quotations of Innolux LED monitors are surprisingly at the same levels as those of traditional CCFL (cold cathode fluorescent lamp) models, effectively attracting HP and Dell to increase their orders to the firm, according to industry insiders. Already shipping 24.5 million LED monitors so far this year, the firm therefore is very likely to attain its original annual shipment goal of 37 million units, or even challenge more than 40 million units for the year.

Innolux successfully pushed up its global market share to 23% in the first half of this year from 16.7% posted a year earlier, while the leader TPV, however, has seen its share gradually move downward to 27.5% from 28.3% during the same span.