By Leonora Walet and Twinnie Siu
HONG KONG | Sun May 27, 2012 5:34pm EDT
(Reuters) - In China, surplus capacity and sliding prices are sounding the death knell for half of the companies making light emitting diode (LED) chips used in Samsung television panels and Sharp computer monitors, with only the large, state-backed players likely to pull through.
Sluggish global sales of TVs and computers may further cut LED chip prices by 20 percent this year, and consolidation or closure are the only options for China's smaller LED players, analysts say.
