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Taiwan's LED Industry to See Production Value Surge 43%

2010/07/27 | By Steve Chuang

Taipei, July 27, 2010 (CENS)--With the growing popularity of LED-backlit LCD TVs fueling sales growth, the production value of Taiwan's LED industry is estimated to sharply soar 43% to US$2.6 billion in 2010 from 2009, accounting for 26% of the global total output of US$9.6 billion, according to Topology Research Institute (TRI).

In response to huge business potential brought by emergence of LED-backlit LCD TVs, global LED makers have been actively expanding their lines of MOCVD (metal organic chemical vapor deposition) equipment. With this, TRI projects global shipment of new MOCVD equipment to shoot up 232% from last year to over 720 sets this year, with 36% of which to go to Korea, 32% to China and 26% to Taiwan.

TRI also analyzed that smaller Taiwanese LED chipmakers may be unable to share the market pies for LED-backlit LCD TVs, unless they increase the number of their MOCVD equipment to over 50 in the coming three years to secure enough production capacity, which is key to attracting internationally large-sized clients to place their orders with them.

At present, larger ones on the island, like Epistar Corp., Formosa Epitaxy Inc. and Lextar Electronics Corp., have had achieved such economies of scale in production, advantageous to compete against overseas rivals. Noteworthy is that, TRI added, smaller ones will have to build closer ties with larger ones in the line or their downstream clients, like AU Optronics Corp., a world-caliber supplier of displays. Another phenomenon probably to be seen in the future is that Taiwanese LED makers will focus their output expansion in China rather than in Taiwan to explore the huge local consumer market more effectively.

In the meantime, global LED output expansion will also help to accelerate application of LED lightings, mainly because LED makers will definitely make good use of their increased capacity to turn out such power-saving, stellar products, Presently, Hon Hai Group, Delta Electronics Inc., AUO and Taiwan Semiconductor Manufacturing Co., Ltd. have been deploying their operations in the field, TRI indicated.