High power LED market growth seize the traditional market quickly

StrategiesUnlimited is expected in 2008 the world's high power LED packaging sales revenue will grow by 12%, in 2012 the world's largest power LED sales revenue will reach $11 billion 400 million, an average annual growth of 18%. Lights and monitors, including LCD TV backlight, will be the largest application areas. StrategiesUnlimited expects solid-state lighting (SSL) will be the main driving force to promote the growth of the LED market, in 2012 its sales revenue will grow to $1 billion 370 million. Large backlit will reach $2 billion 700 million by 2010.

Mainland China has a mature LED supply chain, covering epitaxial wafers and LED chips and packaging, focusing on large size LCD backlight, road lighting and home lighting applications. China Industrial Research Network confirmed that in 2007 about 20% of the mainland GaNLED chip is produced locally, and in the past five years, the region's GaNLED chip all rely on imports.

Taiwan also has more than and 20 suppliers to produce more than 1W rated power LED, the main applications include telecommunications, consumer electronics and automotive products. These manufacturers generally have factories in the mainland, but the R & D center in Taiwan.

Taiwan Optoelectronic Technology Industry Association (PIDA) estimates that in 2007 the Taiwan area LED package operating income is $1 billion 540 million. This year is expected to increase by 18% in 2007, up to $1 billion 840 million. From the LED chip and packaging output value, the Taiwan region ranked second in Japan after.

Hongkong has about 30 LED bulb suppliers, of which 50% produce high power, high brightness LED. The biggest suppliers are not mainland companies with sales offices in Hongkong. Manufacturing activities are carried out outside Hongkong, mainly in Guangdong. Small suppliers are mostly engaged in LED and finished goods trade.

Suppliers in the past few months have been actively promoting high-power LED, high-power, high brightness LED production steadily, although its output share is still very small. The average cost of LED chips is decreased by 20~30% per year, with the development of LED chip technology and the speed of mass production, it is expected that prices will continue to decline. Therefore, the LED offer is expected to be down 10~20%. All types of LED, including high-power LED, will be reduced.

According to FPDisplay, LED and CCFL backlight unit price gap will be significantly reduced, if the LED backlight unit price in 2007 is three times that of CCFL, while at the end of 2008 will be just 1.5 times as CCFL, so the LED backlight unit for the next few months will seize a large number of traditional CCFL market. Given the decline in the cost of key components, LED manufacturers hope that within two or three years of high-power LED can occupy the mainstream applications, and become dominant lighting technology.