28 July 2010


Taiwan’s LED production to surge 43% in 2010 to 26% of $9.6bn global output

With the growing popularity of LED-backlit LCD TVs fueling sales growth, the production value of Taiwan’s LED industry is forecast to soar sharply by 43% from 2009 to US$2.6bn in 2010, accounting for 26% of total output of US$9.6bn globally, according to Topology Research Institute (TRI) in a report in Taiwan Economic News.

In response to huge business potential from the emergence of LED-backlit LCD TVs, LED makers have been expanding their production lines with metal-organic chemical vapor deposition (MOCVD) equipment. TRI hence projects that MOCVD shipments will jump by 232% from last year to more than 720 systems this year, with 36% going to Korea, 32% to China and 26% to Taiwan.

TRI also reckons that smaller Taiwanese LED chipmakers may be unable to take a share of the market for LED-backlit LCD TVs unless they raise the number of MOCVD systems that they have each to more than 50 in the coming three years in order to to secure sufficient production capacity, which is key to attracting orders from large international clients.

At present, Taiwan’s largest LED chipmakers, such as Epistar Corp, Formosa Epitaxy Inc and Lextar Electronics Corp, have achieved sufficient economies of scale in production to compete advantageously with overseas rivals. However, TRI notes that smaller LED chipmakers will have to build closer ties with either larger LED chipmakers or with their downstream clients, such as display maker AU Optronics Corp (AUO).

Another phenomenon that will probably be seen in the future, reckons TRI, is that Taiwanese LED makers will focus their output expansions in China rather than Taiwan in order to explore more effectively the huge local consumer market.

In the meantime, expansion in global LED output will also help to accelerate the application of LED lighting, mainly because LED makers will make good use of their increased capacity to turn out such power-saving products, reckons TRI. Presently, Hon Hai Group, Delta Electronics Inc, AUO and silicon wafer foundry Taiwan Semiconductor Manufacturing Co Ltd (TSMC) are deploying resources in this field, TRI notes.

See related items:

LED market to grow from $7bn in 2009 to $10.7bn in 2010 then $20.4bn in 2012

Taiwanese LED makers expanding to meet backlighting demand

LED-backlit TVs to reach 20% of 180m-unit LCD TV market in 2010

LEDs to surpass CCFL in large-area TFT LCD backlights in 2011

Search: LED-backlit LCD TV MOCVD