A new packaging company will target the LED-backlit TV market, with operations based in JiangSu Province, China.

LED-packaging specialists Everlight Electronics has announced its intention to launch a new company focused on LEDs for TV backlights with partners LG Display and Amtran Technology. The joint venture will be capitalized with $30 million, will be based in WeJiang City, JiangSu Province, China, and plans to start mass production by year's end.

The joint venture will enter the LED backlight market at a time of high demand. Just last week, analyst iSuppli reaffirmed its belief that a shortage of LEDs for TV applications would persist through this year. The firm projects shipment of large-sized LCD panels with LED backlights to reach 276.7 million this year with the number growing to 477.6 million units in 2011 and 817.9 million units by 2014.

Jointly, the three partners in the new venture have shared experience relative to all key aspects of LED-backlit LCD TV technologies. Taiwan-based Everlight has deep experience in LED packaging. Korea-based LG Display is one of the leading manufacturers of thin-film transistor (TFT) LCD panels for TVs, monitors, and notebook computers.

Amtran technology is a contract manufacturer of computer monitors and TVs based in Taipei, Taiwan. The company has a close partnership with Vizio and in fact owns a stake in the company that was the market leader for TVs in the US for 2009.

The companies believe that their shared experience will enable the yet-to-be-named venture to rapidly offer state-of-the art LEDs for the backlight market.