Taiwan will account for a 26% share of the LED chip output globally in 2010, which is projected to increase 37% from 2009 to US$9.6 billion, according to research firm Topology Research Institute TRI Production by Taiwan's LED chipmakers is expected to grow at an even faster pace at 43% to US$2.5 billion.
The research firm pointed out that Taiwan's LED industry will continue to consolidate and synergize as any players unable to expand capacity to at least 50 MOVCD sets in the next three years will likely be eliminated.
The pan-Epistar alliance and AU Optronics AUO with LED subsidiary Lextar are fine examples of Taiwanese players utilizing joint ventures and cross investments with fellow LED companies both upstream and downstream to enable economy of scale, cooperation in technology development, sufficient material and component supplies and order commitments.
MOCVD equipment procurement worldwide in 2010 will increase 232% from 2009 to 720 sets, of which Korea, Taiwan and China will represent 36%, 32% and 26%, respectively, TRI indicated.
With the central and local governments in China pushing the development of an LED industry and LED applications, the majority of capacity ramp by Taiwan's LED chipmakers in the future will take place in China to tap into the massive market opportunities, TRI said.
LED-backlit LCD TV will grab a 20.3% share of the global LCD TV market and in 2014 all LCD TV will be LED BLU enabled, according to TRI. LED TV shipments will increase from 36.95 million units to 260 million units in the same period, and LED lighting solutions are also expected to be the mainstream in the lighting segment.
Taiwan's other tech giants including Fonxconn, Taiwan Semiconductor Manufacturing Company TSMC and Delta Electronics have since made inroads to this massive and high-growth market.
