South Korea LED vendors surge in sales, mainly to meet the demand for LCD TV

South Korean manufacturers are rapidly rising in the LED market (Figure 1). 2009 third quarter of the 4 large South Korean LED manufacturers (Samsung Motors, LG Innotek, Seoul semiconductor and Lumens) LED sector sales reached the same period last year, an increase of 2.3 over the previous quarter, an increase of 436 billion 700 million, won. 9 large Taiwan LED packaging manufacturers in the quarter total sales growth of only 14% over the same period last year, compared with South Korea's growth rate is more significant. At present, not only laptop computers, LCD TV panels have begun to use LED backlight, accompanied by the South Korean manufacturers in the LCD TV market share increased, South Korea's LED manufacturers also increased sales.

Figure 1:4 large LED manufacturers in South Korea LED sales trend (08 years in the first quarter to the 09 quarter of third). Provenance: big and Cathay Capital Markets (January 2010).

South Korean manufacturers will account for more than half of the increase in production capacity in 2010

South Korean manufacturers, the largest increase in sales of Samsung motor. About 5 times the same period last year. The company 09 years in April with Samsung Electronics joint venture to set up a Samsung LED (Samsung LED). Although the investment ratio of 50%, but Samsung LED is a subsidiary of Samsung motors. 2009 Samsung Electronics fully equipped with LED backlight LCD TV (LED TV), the supply of goods for the Samsung LED business pillars.

LG Innotek and Seoul semiconductor laptop backlight light source in terms of LED sales growth. In the notebook computer LED is equipped with the more obvious trend of LCD panel Market in South Korea, LCD panel manufacturers (Samsung, LG display) share more than 60%, the notebook computer market directly to the growth of LG Innotek and the Seoul semiconductor sales growth. The number of LED used in 1 TV sets is more than 10 times as much as that of the 1 laptop computers. Therefore, the two companies have set the television market as the next target. LG Innotek will be from the 09 quarter of the year, Seoul semiconductor will be the beginning of the 09 quarter of fourth, mass production TV LED.

Following Samsung Electronics, LG electronics, SHARP, SONY and large TV manufacturers have begun to carry out a full range of LED TV business, is expected in 2010 LED TV supply will increase. Big and Cathay Capital Markets forecast, in 2010 the global LED TV supply will be about 10 times last year, about 38 million 500 thousand units. As the market is expected to expand rapidly, so for South Korean LED manufacturers, it is imperative to improve production capacity. Samsung LED and LG Innotek plan in 2010 100 MOCVD import (Metal Organic Chemical Vapor Deposition) device, if the implementation of the project, in 2010 the global LED production capacity growth part, South Korean companies will account for more than half. Contributing writer: Mitsuda Hirowa, DA and Cathay Capital Markets)