Due to a sluggish peak season in the third quarter this year as LCD panel makers have cut their output, backlight unit (BLU) makers believe that shipments in August and early September will continues to drop due to shrinking orders.

BLUs are a key component in the LCD panel process, as it has the highest proportion in cost among the key components. For a 32-inch LCD TV panel from a 6G production line, the BLU accounts for 24% of the production cost, the makers pointed out.