Taipei, Tuesday, June 30, 2015 07:13 (GMT+8)
mostly cloudy
Taipei
29°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
  • JTouch continues to see steady demand for metal mesh products

    Displays | 9h 6min ago

  • Digitimes Research: Intel 28nm SoFIA 4G AP delayed to early 2016; may face overlap issue with 14nm version

    Bits + chips | 9h 39min ago

  • Epistar expects business operations to peak in 3Q15

    LED | 9h 44min ago

  • Digitimes Research: Japan has potential demand for UAVs

    IT + CE | 9h 45min ago

  • Industry mergers may boost SPIL's role, says company chairman

    Bits + chips | 9h 47min ago

  • Taiwan LED makers faced with decreased global TV demand, competition from China makers

    LED | 9h 48min ago

  • ASE to raise US$200 million through ECB

    Bits + chips | 9h 50min ago

  • 4K TV panel shipments grow nearly 60% in 2Q15

    Displays | 9h 53min ago

  • Foxconn considers to spin off subsidiaries for listing in China stock market, says report

    Before Going to Press | 9h 13min ago

  • Taipower to limit power supply to industrial user

    Before Going to Press | 9h 15min ago

  • STB purchases from Pay TV operators down in 2014

    Before Going to Press | 9h 16min ago

  • TEEMA opens second Smart Living Center in Nantong, China

    Before Going to Press | 9h 34min ago

  • Digitimes Research: LED makers extend development from LED lighting to IR LED, UV LED

    Before Going to Press | 10h 6min ago

  • Taiwan PV makers hold rosy business outlook

    Before Going to Press | 10h 7min ago

  • Global LED light bulb sales to reach 2.5 billion units in 2015, says Epistar chairman

    Before Going to Press | 10h 8min ago

  • Numerous panel technologies still at forefront for wearable devices

    Before Going to Press | 10h 10min ago

  • Vendors seeking cheaper solutions for metal notebook chassis

    Before Going to Press | 10h 11min ago

  • Go Scale Capital facing challenges with investment in Lumileds, says Epistar chairman

    Before Going to Press | 10h 11min ago

  • Sony, Huawei expanding mobile device sales in Taiwan

    Before Going to Press | 10h 14min ago

Pause
 | 
View more

China AP market 2Q15 shipment forecast

CHINA SMARTPHONE AP | Jun 29, 10:47

Digitimes Research predicts China smartphone AP shipments in second-quarter 2015 will show annual growth due to the depletion of inventories in the first quarter of 2015 and new smartphone products being introduced which contains new AP solutions. The new product...

Taiwan server shipment forecast and industry analysis, 2015

RESEARCH EXTRAS | Apr 10, 15:57

The server market did not perform well in 2014 though rising demand from Internet data centers (IDCs) and China brands helped global shipments (measured by motherboards) grow 7.1% to 10.4 million. Using this as the base for growth, in 2015 the market is expected...

Taiwan LCD TVs – 1Q 2015

TAIWAN DISPLAY SYSTEM | May 22, 15:51

Taiwan's LCD TV makers saw strong seasonal impacts in the first quarter of 2015. Shipments to North America saw a particularly sharp decline as a result of reduced procurement from Mexico and major client Toshiba quitting the North America market.

Taiwan handsets – 1Q 2015

TAIWAN MOBILE DEVICE | May 15, 15:58

Most of Taiwan's handset makers felt strong seasonal effects in the first quarter. Foxconn suffered particularly as a result of drastic drops in orders from Sony Mobile and Microsoft Mobile.

China smartphone market and industry – 1Q 2015

CHINA SMARTPHONE | May 13, 10:56

According to Digitimes Research's survey of the Mainland China smartphone supply chain, as well as other relative vendors, increased demand for Apple's new device models, Mainland China's high-end smartphone models experienced lackluster sales in the first quarter...

High-brightness LED market trends and forecast, 2015
2015 China smartphone panel trend forecast
2015 global notebook demand forecast
  • Wireless broadband developments in Southeast Asia markets

    As of 2013, the 10 ASEAN nations had a total of over 700 million mobile subscriptions, with the CAGR from 2003-2013 reaching 24%. This Digitimes Research Special Report analyzes the various mobile broadband markets in ASEAN and looks at the respective trends in 4G LTE development for those markets.

  • 2015 global tablet demand forecast

    This Digitimes Research Special Report provides a 2015 forecast for the global tablet market and analyzes the strategies of key market players such as Google, Apple, Intel, and Microsoft.

  • 2015 China smartphone panel trend forecast

    This Digitimes Research Special Report analyzes the strategies of key China-based major panel makers BOE, Tianma and IVO for attacking the different market segments through technology and pricing, and their relationship to local vendors Huawei, Lenovo, ZTE, Xiaomi and Coolpad.