Production Value of LED Discrete Devices Is Expected to Top NT$64-65b in 2011

Production value of LED discrete devices rolled out by Taiwan-based LED makers is expected to top NT$64-65 billion (US$2.11-2.14 billion) in 2011, declining 5-8% from a year earlier. Taiwan used to be the biggest supplier of LED chips, but South Korea's output value surpassed Taiwan's in 2010 due to the growth of the LED TV market. In 2011, the output value of South Korea's LED chip industry is likely to fall but South Korea has strong distribution channels of its LED industry. Therefore the difference of market share of the two countries will likely grow once again. Sales of LED TVs have been weaker than expected in 2011, accounting for 30% of the total LED market. The penetration rate of LED TV has been increasing annually and the market expects saturation in 2013-2014. LED applications such as mobile devices have accounted for 30% of the total LED market in 2011, but the market share has been falling continuously. Sales of LED lighting have been increasing and in 2011 LED lighting is likely to account for 11% and reaching 24% in 2015. Taiwan-based firms have been eagerly expanding the LED lighting business. LED chipmakers such as Genesis Photonics has indicated that sales of LED lighting in 2011 has been accounting for 30-35% of total sales. Epistar also plans to increase sales of LED lighting from 20% to 30% of total revenues in 2012. Lextar hopes to increase sales of LED lighting to 50% of total sales in 2012. Source: www.digitimes.com