LED Lighting Market Has Been Performing Relatively Well Compared to LED TV Market

The LED lighting market has been performing relatively well compared to the LED TV backlight market. According to Delta, the sweet spot for LED lighting prices will be reached around the second half of 2011 to 2012. Delta expects LED light bulbs to change from wedge based to wide-angle based and the importance of the lighting control system will increase. Delta stated the mainstream LED light bulbs currently are still wedged based type with viewing angles of around 180 degrees. However, when wide-angle type LED light bulbs reach a brightness of 800 lumens from 400-480lm/watt, they will become the mainstream, added Delta. Wide-angel base type LED light bulbs with 800lm/watt will debut in the market during mid-2011. Furthermore, as the importance of lighting control systems increases, power supply will become a core technology driving the development of the market and increasing the value-added of LED lighting. Delta noted the development of LED lighting technology has been fast since the second half of 2010 when Cree introduced LED chips with 130lm/watt after packaging. Taiwan-based packaging houses could only achieve brightness of 110lm/watt at the time. However, Taiwan-based firms have been improving such technologies and achieved 130-140lm/watt for cold white and 115lm/watt. Delta has introduced 160lm/watt light bulbs and begun mass production. The product with Epistar chips and single LED packaging can achieve a brightness up to 182lm/watt and Delta expects mass production to take place within the next year. Delta predicts the sweet spot of pricing will appear around the end of 2011. By then, NT$1,000 (US$34) will buy three wedged base LED light bulbs to replace traditional 60W light bulbs. Delta noted the growth of China's LED products has been recognized by international buyers. Taiwan currently has an edge over China-based counterparts in vertical integration in the LED supply chain. This is also the reason why international brands like to order from Taiwan-based LED firms. Delta pointed out that in the future, cross-strait cooperation instead of competition is inevitable for the industry to grow. South Korea-based firms have also been eager to increase market share in the LED lighting market and have been promoting own-brand products. However, in comparison with Taiwan-based firms, South Korea-based counterparts have not been strong in the production of modules and components. Hence, the relationship between firms in the two countries has been but competition and cooperation simultaneously. What Taiwan-based firms lack is financial backing from the government, which both South Korea- and China-based firms have. This means the battle in the LED field will not only be between firms, but between countries. Delta has been joining the LED lighting market in recent years by promoting own-brand products and obtaining OEM orders from Japan- and Europe-based lighting firms. Delta's own-brand LED lighting products became available in the market in second-quarter 2011. Source: www.digitimes.com