ISuppli forecast: Global LED will face supply shortages in 2010

Market research agency iSuppli said that in 2010, the global light emitting diode (LED) supply will face a shortage situation, if LED capacity does not increase, so, in 2010 the market will be much needed facing the serious shortage of end equipment.

2009, LED's total sales reached 63 billion, compared with the number of the year in 2008 has increased 57 billion.

Global LED shipments in 2006 -2013

As demand exceeds supply significantly, and in the next three years, the LED market is expected to grow by the figure of two. ISuppli expects that if this year's additional capacity is still not able to meet the growing demand, then this year may be a serious shortage.

Notebook computer usually uses 50 LED, or monitor uses about 100 LED, on average consumption, LCD TV panel used by LED to 300 to 500. Because LCD TV uses LED backlight, and requires a high degree of uniformity, therefore, the industry is facing a shortage of LED will become the main factor affecting the TV panel.

At present, the application of LED widely, not only can be used in backlight, but also can be used for large size LCD TV, computer screen and small LCD, including notebook computer, mobile phone, portable navigation devices, digital photo frame, digital camera and keyboard.

In addition, LED solutions in the general lighting market is increasingly widely used to meet residential, commercial and industrial lighting applications. LED for the general lighting market is still in its infancy, but in the next two years will become the mainstream market.

The application of the standard luminance LED includes the indicator and LED alphanumeric display. In contrast, high brightness (HB) LED applications include flat-panel TVs for large screen LCD, notebook computers and computer monitors. The third is ultra high brightness (UHB) LED, can be used for the next generation of lighting applications, such as residential and office lighting.

Large screen LCD monitors will touch the pulse of the LED most seriously affected

LED supply chain participants are looking for solutions to cope with the anticipated shortage of supply.

The two main characters of LED industry, Germany Ace (Aixtron) and the United States Woelco (Veeco) plans to the fourth quarter of 2010, respectively, the production capacity doubled.

Market research firm iSuppli said, LED industry is taking measures, through from the raw material to the wafer, from bare chip production to packaging, and testing to the finished product of LED lamps, to greatly expand its production capacity. However, the increase in capacity will take time.

In terms of LED panel suppliers, the strategy will be used to address supply shortages, including vertical integration and internal procurement.

Samsung Electronics, for example, the company has a joint venture with its Samsung ELectro-Mechanics, and, LG display has been aligned with LG Innotek. CMO and AUO is the two largest LED panel suppliers are actively developing their own internal LED procurement, to ensure the continued supply of their equipment. (http://www.ledsmagazine.com/products/21346)