The Fast Expanding LED Lighting Market Is Squeezing Chip Supply to The Backlighting Market

Integration of downstream lighting module and fixture makers will likely bring in revenues of NT$850 million (US$29 million) for Epistar in 2012, according to Lee Biing-jye, chairman of the Taiwan-based LED epitaxial wafer and chip maker. Lee stated the integration has taken place over the last two years and that through investment holdings or lighting firms looking to cooperate, there will be integration from upstream chips to packaging and even with modules and products. This will break the traditional method of chip firms simply passing their goods over to packaging manufacturers and will help further meet industry requirements, added Lee. Lee further stated the fast expanding LED lighting market is squeezing chip supply to the backlighting market. With Samsung and other firms promoting direct-type LED TVs, capacity for LED backlighitng applications will become tight, Lee said. There is a chance that Samsung may relax requirements on LED chip quality in May, which will in turn boost Epistar's yield rates and help digest its standardized products, Lee added. Meanwhile, there have been many improvements in the LED lighting market particularly with promotion of interior and street lighting standards by the Zahga Consortium, Lee said. Many firms are moving towards using Zhaga's lighting interfaces for their future LED lighting products and it is estimated that the interfaces will be the standard in the market as of 2015. Source: www.digitimes.com