Rising sales of LED backlights for LCD TVs are driving strong growth of Taiwans LED industry. Firms involved in the supply chain include: LED TV panel makers AUO, CMO, CPT; LED TV brand names Amstran, BenQ, CMO; LED chip makers Epistar, Formosa Epitaxy, Tekcore, Huga, Optotech, Lextar, Chi Mei Lighting; LED packagers Unity Opto, Everlight, Harvatek, LiteOn, LHTC, Wellypower; and LED lead frame producer I-Chiun (Photo Credit: Samsung)
Semiconductor Today
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Taiwans LED industry to grow 18% in 2011
13 October 2010
Semiconductor Today
Taiwans LED industry revenue is likely to grow 18% next year from
this years estimated NT$86.4bn (
US$2.7bn at US$1:NT$32) according to the government-backed Photonics Industry & Technology Development Association (PIDA), reports the Taiwan Economic News (CENS).
According to the PIDA,
Taiwan is currently the world's No. 1 LED supplier by volume and No. 2 by revenue. Of its 2010 revenue of NT$86.4bn, an estimated NT$54.4bn (US$1.7bn) will be generated by the packaging segment and NT$32bn (US$1bn) by the chip-making sector.
LED backlights for mobile phones remain the major revenue earner, accounting for 37% of the total, followed by 32% contributed by LED devices used in electronic equipment.
However, road sign, outdoor billboard and lighting applications will serve as the revenue growth engine. PIDAs statistics show that LED road signs and billboards accounted for 20% of Taiwan`s LED industry revenue in 2009, up from 2008's 5%, while lighting application comprised 7% of the revenue in 2009, also up from 5% in 2008. The PIDA also points out that this year LED TV and other consumer electronics applications will begin driving demand for LEDs.
In conjunction with its plan to also build Taiwan into the worlds center of LED lighting modules and light sources, the government has developed a plan to boost the island's LED industry revenue more than six-fold from 2010 to NT$540bn (US$16.8bn) in 2015, creating 54,000 jobs for the industry.
Industry executives says that the strength of Taiwans LED industry lies in its complete processing chain manufacturing everything from epitaxial wafers and chips to packaging and modules. However, the industrys weakness lies in its 80% dependence on imported manufacturing equipment and materials, it is noted.
The executives add that cooperation with mainland China is crucial to Taiwans LED industry in the light of the mainland's huge market for LED lighting projects. In addition, they urge the Taiwan government to offer lucrative incentives to users of LED lighting, in addition to coming up with industry standards for LED lighting."
Millions of LED street lights are being deployed in Taiwan. The supply chain involves: LED chips from BridgeLux, Cree, Epistar, Formosa Epitaxy, Nichia, Osram, SemiLEDs; LED packages from Everlight, LiteOn, AOT, Bright, Harvatek, Lustrous; LED thermal modules from TTIC, CCI, AVC, Neng Tyi, Lustrous, NeoPac Opto, Advanced Thermal Devices, AuguX; LED lamp poles from Toalux, Everready Precision; and LED street lamp systems from FITI, NeoPac Opto, Bright LED, TTIC, Advanced Thermal Devices, Harvatek, LEOTEK, Delta, TGI, Unity Opto, Neo-Neon, Tatung, Genius, Topco, Anteya, Yeong Li, Alliance Optotek, AuguX, Everlight
Taiwanese LED Makers Aggressively Expanding in Light of Bright Future | CENS.com - The Taiwan Economic News
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Taiwanese LED Makers Aggressively Expanding in Light of Bright Future
2010/04/13
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The market potential of LED has also attracted the attention of major electronics firms on the island, many of which have bought into LED firms, including Hon Hai, AU Optronics, Inventec, Lite-On, United Microelectronics Corp. (UMC), and Taiwan Semiconductor Manufacturing Corp. (TSMC). TSMC, for instance, has invested US$40 million in BridgeLux, a epitaxy-wafer maker in the U.S., thereby gaining a seat on the company`s board of directors. Some have set up their LED subsidiaries, such as AU Optronics.
Some local electronics firms have even set their sight on the market across Taiwan Strait.
Epistar, for instance, has teamed up with Lite-On and a Chinese home-appliances maker in setting up an LED firm in Changzhou of Jiangsu Province at cost of US$120 million, in addition to joining hands with UMC for investing US$16 million in an LED plant in Shandong Province. Powerchip, a memory-chip maker, has also resolved to invest US$15 million in establishing an LED firm in Xuzhou of Jiangsu Province.
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As a result, market players foresees tremendous growth potential for the global LED market, now reaching only US$8 billion annually, in the coming years. Taiwan stands in a good stead to tap that potential, thanks to its well-established LED component industry, which ranks first place worldwide in output volume and second place in output value, trailing only Japan.
Output value of Taiwan`s LED industry hit US$1.5 billion in 2008, for 20% of global market share.
Epistar, for instance, is the world`s largest red-light and the third largest blue-light LED epitaxy supplier, boasting over 50% global market share for LED TV back-lit device. Among the world`s top five LED firms, it is the only one specializing in upstream epitaxy production, with
1,100 patents including those still pending, firmly consolidating its global status.
(by Philip Liu)"