Cirmaker Technology which manufactures set top boxes for the digital TV market has announced that it has signed a non-binding agreement with K-Bridge Electronics to manufacture backlight modules and related components for 17-inch LCD TV and PC monitor display panels. K-Bridge Electronics produces LCD TV display panels.

Cirmaker says it expects to begin producing backlight modules and other components of LCD 17-inch display panels in its plants in Taiwan and mainland China under specific orders from K-Bridge Electronics from June. The orders are contingent on Cirmaker Technology's receiving certification to manufacture backlight modules. Cirmaker claims to have prepared all the required samples to proceed with the certification process.

Cirmaker expects $3.2 million in revenue from this line of activity. The release adds that revenue and profits from this new line of business are expected to increase in future years if the slim LCD display panels begin replacing the bulky CRT picture tube television sets around the world.

A report from Displaysearch estimates that the slim big screen LCD TVs' share of the market will expand to 16 per cent in 2007 from two per cent this year creating a market of 200 million LCD TV sets.