Taiwan's LED Industry to See 18% Revenue Rise in 2011

Oct 12, 2010 Ι Industry In-Focus Ι Electronics and Computers Ι By Ken Liu, CENS
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Taipei, Oct. 12, 2010 (CENS)--Taiwan's light-emitting diode (LED) industry is likely to see revenue rise 18% next year from this year's estimated NT$86.4 billion (US$2.7 billion at US$1:NT$32) as a whole, with road sign, outdoor billboard and lighting applications to serve as revenue growth engine, according to a market consulting firm.

The government-backed Photonics Industry & Technology Development Association (PIDA) said that LED backlights for mobile phones remain the major revenue earner of Taiwan's LED industry, accounting for 37% of the total, followed by 32% contributed by LED devices used in electronic equipment.

PIDA's statistics show that LED road signs and billboards accounted for 20% of Taiwan's LED industry revenue last year, up from 2008's 5%, while lighting application comprised 7% of the revenue in 2009, up from 2008's 5%.

According to PIDA's statistics, Taiwan is currently the world's No.1 LED supplier by volume and No.2 by revenue. Of its 2010 revenue of NT$86.4 billion, an estimated NT$54.4 billion (US$1.7 billion) will be generated by the packaging segment and NT$32 billion (US$1 billion) by the chip-making sector.

PIDA pointed out that LED TV and other consumer electronics will begin this year driving demands for LEDs.

In conjunction with its plan to build the island into the world's center of LED lighting modules and light sources, Taiwan government has worked out a plan to boost the island's LED industry revenue to NT$540 billion (US$16.8 billion) and create 54,000 jobs for the industry in 2015.

Industry executives said that the strength of Taiwan's LED industry lies in its complete processing chain doing everything from epitaxy wafer and chip to package and module. And the industry's weakness rests with its 80% dependence on imported manufacturing equipment and materials.

The executives continued that cooperation with mainland China is crucial to Taiwan's LED industry in light of the mainland's huge markets for LED lighting projects. In addition, they urged Taiwan government to offer lucrative incentives to users of LED lighting in addition to coming up with industry standards for LED lighting.