South Korea-Based Makers Occupied 26% of The Global Production Value for LED Packaging

Samsung LED, LG Innotek, Seoul Semiconductors, and other South Korea-based makers together occupied 26% of the global production value for LED packaging in 2011, higher than the 19% share of Taiwan-based fellow makers, according to Strategies Unlimited. The capacity utilization rates of South Korea-based LED epitaxial wafer firms were relatively low compared with Taiwan-based peers, but by purchasing LED chips from Taiwan-based firms, South Korea-based LED packaging firms still maintained strong growth in market share. The key is that South Korea-based LED packaging firms have steady distribution channels with TV brands. The rapid growth of the LED TV market also helped South Korea-based LED firms to expand market share. Industry sources noted that South Korea's LED industry spurred much later than other countries'. However, the entering of large-size firms such as Samsung and LG Innotek helped South Korea to become one of the strong producers of LED products. In 2010, Samsung LED became the second largest LED packaging firm, behind Japan-based Nichia. LG Innotek ranked number six with Cree in 2010. In 2011, Samsung LED continued to rank second but LG Innotek moved up to number four while Seoul Semiconductor ranked number five. Taiwan-based Everlight ranked tenth. Japan's LED packaging output value still accounts for 30% of global market share. China's LED industry has been expanding rapidly, but total output value only accounts for 6%. Industry sources believe the demand for LED TV backlighting will show signs of growth and average utilization rates will increase to 70-80%. Orders from new LED TV models will continue to the second half of March, added industry sources. Source: www.digitimes.com