Industry Overview: LED Industry lights up in Taiwan
Aug
05,
2010
Taiwan’s LED output ranks worldwide NO.1 in terms of volume and NO. 2 in value, is continuingly expanding mainly due to increasing deployment of LED backlights in displays, according to a statement by the Photonics Industry and Technology Development Association (PIDA).
The global downturn that set in at the end of 2008 caused a market slump and a decline in revenue generated by Taiwan’s LED industry. However, according to statistics, estimated revenue from Taiwan’s LED industry still hit US$ 2.5 billion in 2009, which is 3% higher than the previous year.
Taiwan LED Industry comes out ahead
Since the beginning of 2010, strong LED demand from consumer electronic products, led by LED backlit TV, has taken the industry by surprise. Analysts forecast that Taiwan’s LED industry will generate US$ 2.7 billion in 2010, with LED chip production breaking US$ 1 billion and the packaging rising to about US$ 1.7 billion.
It is also forecasted that that Taiwan’s LED industry will do even better in 2011, with the year-on-year revenue growth of 18%.
Applications in displays and illumination will grow
The number one application for Taiwan’s LED products is mobile phones, with a 37% share of total revenue, followed by electronic devices, accounting for 32%, according to PIDA.
Analysts forecast that continued growth for the next few years is generated by the deployment of LEDs in signs/displays and illumination. The signs/displays application accounted for over 20% of the total LED sales in 2009, and achieved 5% revenue growth compared with 2008, while the share of LED illumination increased to 7% in 2009 from 5% a year earlier.
LED cost will drop as Taiwan’s LED epitaxy/chip makers expands
Many Taiwan LED epitaxy/chip makers are planning to expand their capacity this year to meet the rising demand, which according to industry sources is 20% to 30% above existing LED supply.
The fast growing LED market has also caught attention of leading semiconductor companies. Clark Tseng, senior manager market analyst at SEMI Taiwan, said, “We do see some similarity of LED industry compared to the early stage of semiconductor industry. The LED industry is set to enter the growth stage of its life cycle. We expect to see more global firms enter that LED industry supply chain, and this will help to bring down costs and improve productivity.”
TAITRONICS 2010, a must-attend event for sourcing professionals
TAITRONICS 2010, scheduled to take place on October 11-14 in Taipei, is a great opportunity to see the integrated and comprehensive LED industry supply chain in Taiwan. Everlight Electronics, a world’s leading SMD LED supplier, is one of key exhibitors too.
This extensive electronics trade show will present visitors with a great opportunity to not only check out what the LED manufacturers has in store for all sorts of LED applications and the latest developments, but also to source other components or tools in other exhibit categories as well. For more information please visit TAITRONICS on the web at: www.TAITRONICS.org