Taipei, Friday, November 28, 2014 14:09 (GMT+8)
mostly cloudy
Taipei
27°C
Digitimes Insight: South Korea LED supply chain unaffected by Japan earthquake
Willie Teng, DIGITIMES, Taipei [Wednesday 16 March 2011]

South Korea's LED supply chain relies on Japan's Kyocera and Namiki for sapphire substrates, and Nichia and Toyoda Gosei for epitaxial wafers, chip packaging and LED phosphor materials.

Among the Japan-based companies, Namiki was hit the hardest by the recent earthquake offshore of Japan. Nichia and Toyoda Gosei were relatively unscathed.

In sapphire substrates, South Korea's Sapphire Technology Company (STC) and Astek already have ingot production and slicing capability. Iljin Display and Hansol Technics (formerly Hansol LCD) also have ingot slicing operations. With Hansol Technics and LG Siltron expanding to upstream sapphire substrates since 2010, South Korea has become less reliant on overseas supply sources. Hence Namiki's production disruption should have little impact on South Korea's LED industry.

Additionally, as STC now has the world's largest capacity for LED-use sapphire substrates, Namiki's share of the South Korea LED market has been down for quite some time.

As for MOCVD equipment, South Korea LED chipmakers mainly rely on Germany's Aixtron and US-based Veeco, and hence, the earthquake has not affected equipment supply to the country. From epitaxial wafers to chip packaging, South Korea has sufficient capacity within the country, plus Nichia and Toyoda Gosei sustained only minor damages.

However, South Korea still needs to improve its own capacity in phosphor material production. Though, as mentioned, Nichia and Toyoda did not sustain serious damages, shipments from Japan to South Korea could be impacted by air and sea traffic delays.

Overseas and domestic suppliers of South Korea LED supply chain

South Korea

Overseas

MOCVD equipment

AP System, Top Engineering, Juseng Engineering

Aixtron, Veeco

Phosphor materials

Force4, Daejoo Electronic Materials

Nichia, Toyoda Gosei, Osram

Sapphire substrates

STC, Astek, Iljin Display, Hansol Technics

Rubicon, Monocrystal, Kyocera, Namiki

Epitaxial wafers

Samsung LED, LG Innotek, Seoul Optodevice, EpiValley

Nichia, Toyoda Gosei, Cree, Osram, Philips Lumileds, Epistar

LED chip

Samsung LED, LG Innotek, Seoul Optodevice, EpiValley

Nichia, Toyoda Gosei, Cree, Osram, Philips Lumileds, Epistar

Chip packaging

Samsung LED, LG Innotek, Seoul Semiconductor, Alti-Electronics

Nichia, Toyoda Gosei, Cree, Osram, Philips Lumileds

Source: Companies, compiled by Digitimes, March 2011

Topics: Page 2

Realtime news
  • Wage rates in eastern China rise in November

    IT + CE | 1h 33min ago

  • Delta Electronics to add stake investment in Neo Solar Power

    Before Going to Press | Nov 27, 21:31

  • Taiwan PCB production value to rise 7% in 2014, says IEK

    Before Going to Press | Nov 27, 21:29

  • Demand for PCIe SSDs to boom, say controller suppliers

    Before Going to Press | Nov 27, 21:28

  • Global COF tape supply likely to fall short

    Before Going to Press | Nov 27, 21:28

  • Taiwan market: Smartphones sized 5-inch and above make up 67% of overall smartphone market

    Before Going to Press | Nov 27, 21:27

  • LG Display aims to expand its vehicle display business to US$2 billion by 2018

    Before Going to Press | Nov 27, 21:26

  • Taiwan market: TV vendors slash prices 15% to spur orders

    Before Going to Press | Nov 27, 21:25

Pause
 | 
View more

2015 global notebook demand forecast

RESEARCH EXTRAS | Nov 28, 11:01

According to Digitimes Research, global notebook shipments will decline by 2.1% in 2014 to 170 million units and shipment totals in 2015 will continue to show a decline. While the business notebook market benefitted from the expiration of support by Microsoft...

Wireless broadband developments in Southeast Asia markets

RESEARCH EXTRAS | Nov 12, 10:53

As of 2013, the 10 ASEAN nations had a total of over 700 million mobile subscriptions, with the CAGR from 2003-2013 reaching 24%, and the share of the global user base rising from 4.9% to a high of 10.6%. This Digitimes Research Special Report analyzes the various...

Taiwan handsets – 3Q 2014

TAIWAN ICT | Nov 20, 10:53

Taiwan's top handset ODM Foxconn Electronics lost a significant amount of feature phone orders from Microsoft Mobile in the third quarter, while the biggest brand vendor HTC also saw a sharp decline in its shipments. But for others in Taiwan's handset sector,...

China smartphone market and industry – 3Q 2014

CHINA SMARTPHONE | Nov 14, 19:21

Looking at smartphone sales in the local China market, under the influence of stagnating sales of international brands, a lack of differentiating features in high-end and high-cost/performance ratio products marketed by China-based makers, and ultra-low-cost...

Taiwan LCD TVs – 3Q 2014

TAIWAN FPD | Nov 14, 15:51

Taiwan's LCD TV manufacturing sector saw mixed performances among its players in the third quarter of 2014, resulting in only slight growth in overall shipments. For the whole of 2014, the Taiwan makers are expected to see a 1.8% growth in shipments, falling...

China FPD, 2014-2017
DIGITIMES Marketing Services
Greater China touch panel shipment forecast through 2015
  • 2014 global high brightness LED market, trends and shipment forecast

    For the global LED lighting market, the market size will reach US$25.82 billion in 2014 or a market penetration rate of 23.4%. This is attributable to exponential shipment growth for light bulbs, tubes, and directional lamps.

  • Greater China touch panel shipment forecast through 2015

    This Special Report provides forecasts through 2015 for Greater China touch panel shipments with breakdowns based on technology (glass, film, resistive), application (smartphone, NB and tablet) and by firm.

  • 2014 global tablet demand forecast

    This report analyzes the main players, their strategies and shipments forecasts for 2014, as well as other factors contributing to either growth or decline in various segments within the tablet market, with a particular focus on Apple, Google, Samsung, and Microsoft, along with whitebox vendors.