Asia, particularly China, will sustain LED business near term

NEW TRIPOLI, USA: While we continue to see steady and positive proliferation of LED lighting products, key price points could trigger real commercial demand, and Korea, Japan, and China have the solutions according to a report “Niche Markets and Strategies for Small/Mid-size Semiconductor Equipment Companies," from The Information Network.

The rapid increase in the market for LEDs used in various applications such as notebook backlights and automobile headlights is spurring heavy capital investments by LED makers. LEDs are creating a niche market for conventional suppliers of semiconductor processing tools and a lucrative market for MOCVD suppliers.

High brightness LEDs (HB-LEDs) will reach nearly 135 billion units shipped in 2011 from less than 100 billion in 2010. Backlight LEDs (BLU-LEDs) will reach 30 billion units shipped, up from 20 billion in 2010.

South Korean government has launched a new LED lighting adoption program last month as part of their national energy-saving program. The program aims at achieving 100% adoption rate for LED lighting in the Korean public sector and 60% penetration of all lighting applications nationwide by 2020. The government will fund $185 million in 2012 and 2013 to support energy-efficiency rebates.

South Korea’s Samsung and LG market domestically broad range of LED lighting products coupled with highly competitive pricing strategies. Samsung already has a 60-watt equivalent LED light bulb at less than $20.

In Japan, sales volume LED light bulbs have already reached an adoption rate of more than 40% and are expected to exceed 50% in the second half of 2011.

In China, Central Government’s objective is to end up with five to six major Chinese players, who can compete globally, including three to five flagship companies. Not only will China become a powerhouse in low-cost manufacturing by 2015, it will also be the largest consumer of LEDs. Currently, there are 50 large indoor and outdoor lighting projects ready for in place.