Microsemi Corporation will now be offering LED backlighting solutions to privately-held VIZIO, Inc. Based in California, this consumer electronics company will fit Microsemi’s LED backlight driver LX27901 into its E-Series 60-inch and 70-inch Class Razor LED Smart TVs.
VIZIO’s focus area is LED-backlit LCD displays. It produces other electronic devices such as High Definition (HD) Surround Sound systems, LCD computer monitors and HDTV accessories. In 2011, it also launched mobile phones and tablets called Via Phone and Via Tablet, respectively.
Light-Emitting Diode, or LED, is a popular display format now and might replace all forms of lighting in the future. LED has various advantages, such as lower maintenance cost, greater operational efficiency and lower energy consumption. LEDs are therefore used not just in consumer electronics devices, but also in laboratory and electronics test equipment.
Thus, the adoption of Microsemi’s LED products by such a key player is surely a positive; particularly when industry leaders incorporate its solutions into their products. The collaboration with VIZIO will help Microsemi strengthen its LED product portfolio and offer better solutions to equipment manufacturers. We expect Microsemi to continue with its collaborations as there is further growth opportunity in the LED segment. Technology stalwarts, such as Hewlett Packard (HPQ - Free Report) and Philips Electronics (PHG - Free Report) also use this technology in various products.
Research conducted by MarketsandMarkets suggests that the LED chips market is expected to reach $8.536 billion by 2014, growing at a CAGR of 22.0% from 2009 to 2014. LED backlighting in LCD panels will mostly lead the growth as LED chips have low operating cost. LED bulbs are also leading the race.
Microsemi’s revenue in the third quarter of fiscal 2012 was $259.2 million, up 4.0% sequentially and 19.6% year over year. The communications market was the largest contributor, making up 31.0% of sales. The defense & security market generated 28.0% of sales and aerospace generated 21.0%. The defense, aerospace and medical markets largely use Microsemi’s high-reliability chips, while the other markets use its analog/mixed signal products.
Both Microsemi Corporation and Hewlett Packard have a Zacks #5 Rank, implying a short-term ‘Strong Sell’ rating. However, Philips has a Zacks #1 Rank, implying a short-term ‘Strong Buy’ rating.