2006 for portable applications LED value will begin to decline

According to Formosa Epitaxy, chairman Chien Fen-ren said, LCD panel backlight applications to promote the LED market growth in the next three years will. On the contrary, because the market is saturated the average price decline, in the field of portable LED production value may be reduced from the beginning of 2006. Chien Fen-ren said in 2005 for portable devices LED global sales rose 20%, sold about 810 million mobile phone. However, in 2005 the production value of LED in portable devices only rose 6% to $4 billion, with more than 40% compound annual growth rate between 2001 and 2004, Chien said that due to the entry-level LED to pile up in excess of requirement growth rate slow, mainly in the portable device keyboard backlight. The price for this area has gone down by 50%.

Although the global market is expected to have more than 900 million portable in shipments this year, but the huge decline in prices dragged under the production value, according to Chien Fen-ren said that the decline in the average price of the shrinking LED and traditional CCFL price gap and therefore faster in the backlight larger panel sizes in LED, especially in the area of 7 inches by car.

Johnson, vice president of the China Taiwan optoelectronics lighting business unit, said Ku, used for automotive 7 inch panel backlight LED need to prevent vibration and can work at high temperature and humid environment. Security is very strict for cars, LED companies in the field of automotive LCD panel to seek new markets and get better prices and profits.

AU Optronics and Innolux, which accounted for two of the world's Display panel shipments of 7 inches, the Taiwan LED industry sources said, LED penetration in 2006, the market will be more than 7 inches in the panel of more than 30%. About 10% of Innolux's current panel shipments are LED, and the company says it will reach $40% by the end of this year. AUO company has started mass production with 7 inch LED lighting panel, monthly shipments of 200000-300000 units.

According to the analysis of BNP Paribas, the 7 inch panel and the above panel backlight LED will not account for most of the revenue of LED manufacturers in 2006, but the small shipments in this area in the real estate in the fourth quarter of this year. The LED adoption rate in the 7 inch panel will accelerate in 2007.