13 October 2010


Taiwan’s LED industry to grow 18% in 2011

Taiwan’s LED industry revenue is likely to grow 18% next year from this year’s 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. PIDA’s 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 world’s 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 Taiwan’s LED industry lies in its complete processing chain manufacturing everything from epitaxial wafers and chips to packaging and modules. However, the industry’s 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 Taiwan’s 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.

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