29 March 2012

LED market slowing in 2012 after two years of high growth

After two years of explosive revenue growth, the LED market appears to be slowing in 2012, notes the Strategy Analytics GaAs and Compound Semiconductor Technologies Service (GaAs) viewpoint ‘Compound Semiconductor Industry Review January 2012: Optoelectronics, Materials & Equipment’.

The report from market research firm Strategy Analytics highlights that equipment spending and epitaxial substrate demand in the LED sector is forecast to decline in 2012. This validates recent announcements from equipment manufacturers (such as MOCVD reactor maker Aixtron) that substantial funding from Asian governments has been masking inherent softness in LED demand. The viewpoint also summarizes technology, product, contract, financial and employment announcements in January from from major optoelectronic material, device and equipment suppliers (such as Soitec, Sumitomo Electric, AXT, IQE, Oclaro, Cree, Renesas Electronics, GigOptix, Avago Technologies, JDSU, Lumileds and First Solar), categorized by material and equipment, laser, LED and compound photovoltaic activity.

“The LED industry has grown in cycles,” notes Eric Higham, director of the Strategy Analytics GaAs and Compound Semiconductor Technologies Service. “The first phase involved backlighting for small consumer devices, like mobile handsets. These solutions have evolved to meet the needs of laptop, TV, electronic sign and automotive applications, and the next wave for LED adoption appears to be commercial and residential lighting,” he adds.

“Despite a slowdown in demand, companies are hard at work developing products that improve the performance and cost of devices in preparation for the next wave of LED adoption,” comments Asif Anwar, director of the Strategy Analytics Strategic Technologies Practice.

See related items:

MOCVD system shipments for GaN LEDs to fall 48% to 342 in 2012

HB-LED market grew 4.3% in 2011 to $12bn

Aixtron reports loss in Q4 on revenue down 38% year-on-year

HB-LED market to grow 13.4% from 2011’s $8.9bn to $10.1bn in 2012

Veeco’s revenue falls 28% in Q4/2011 due to MOCVD down 32%

LED fab equipment spending to fall 18% in 2012

MOCVD tool shipments fall to 170 in Q3; 2011 forecast cut to 700 tools

Tags: LED market MOCVD Epi wafers

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