UPDATED. 2020-10-22 14:35 (목)
Seoul Semiconductor supplies 80% of LEDs for LG LCD TV
Seoul Semiconductor supplies 80% of LEDs for LG LCD TV
  • Gijong Lee
  • 승인 2020.08.05 08:21
  • 댓글 0
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Epistar-backed Ledaz has also newly entered the supply chain
Image: Seoul Semiconductor
Image: Seoul Semiconductor

Seoul Semiconductor has significantly increased the LED it supplies to LG Electronics for the latter’s LCD TVs, TheElec has learned.

It is due to LG InnoTek halting LED module production for backlight units (BLU) used in LCD TVs. 

South Korean LED maker Ledaz has also entered LG Electronics’ supply chain, people familiar with the matter said.

Seoul Semiconductor is supplying 80% of the BLU LED for LG LCD TVs. Ledaz and LG InnoTek was providing 10% each.

Last year, LG InnoTek supplied 70% of the LEDs while Seoul Semiconductor provided 30%.

Seoul Semiconductor is expected to supply even more LEDs for LG’s premium LCD TVs such as its Nanocell models. 

LG InnoTek will continue to supply its remaining stocks until the end of the year, before fading out of the supply chain completely by the fourth quarter.

Ledaz, which has newly entered LG Electronics’ supply chain for its LCD TVs, has received funding from Taiwanese LED maker Epistar and has posted 54 billion won in annual sales last year. It uses contract makers for production. The company is expected to supply LED modules for two new LCD TVs that LG is launching later this year.

LG Electronics was also reviewing getting further LED suppliers from other vendors as well.

The company gets the modules for TVs directly from its suppliers rather than going through with LG Display, its LCD panel supplier. BLU LED module suppliers for monitors and tablets, however, supply them to LG Display, which in turn supplies them to LG Electronics with the panels.

LG InnoTek has accumulated operating loss close to 1 trillion won from its LED business up to last year. Its sales from LED continued to dip every year from 2017 to 2019. The business contributed 651.6 billion won in sales while posting an operating loss of 35.2 billion won in 2017. Its 2018 performance stood at 34 billion won in operating loss and sales of 456.5 billion won. In 2019, operating loss stood at 83.6 billion won with sales of 354.6 billion won.


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