Taipei, Monday, December 29, 2014 12:13 (GMT+8)
partly cloudy
Taipei
17°C
Trends in Asia's LED chip manufacturing industry
Jessie Lin, DIGITIMES Research, Taipei [Thursday 13 September 2012]
Registration required (free) to purchase. Please sign in if you wish to continue.
Asia is playing an ever more important role in upstream LED chip manufacturing. The region accounted for 80% of MOCVD demand in 2011 and will account for 90% in 2012, largely because Taiwan, Japan, South Korea and China are the major global centers for LED chip production. China will account for 68% of demand this year, although its LED chip makers still need to make major improvements to their technology; consequently, manufacturers in Taiwan, Japan and South Korea continue to have a competitive edge at present.
Abstract
MOCVD demand share by geographic region, 2011-2012

Asia is playing an ever more important role in upstream LED chip manufacturing. Digitimes Research projects that the region will account for 90% of global demand for MOCVD units in 2012, up ten percentage points on the share in the previous year. China accounts for 68% of this figure, although its LED chip makers still need to make major improvements to their technology; consequently, manufacturers in Taiwan, Japan and South Korea continue to have a competitive edge at present.

South Korean manufacturers are generally more competitive in terms of their LED industry chain than their counterparts in Japan and Taiwan, largely thanks to their all-in-one, integrated modes of production, with value added by strong brands in the case of Samsung in particular. However, in terms of LED chip manufacturing capabilities alone, Japanese manufacturers are the most competitive, followed by players in Taiwan, South Korea and China in that order.

Japanese manufacturers are projected to have the highest total output value of any Asian nation/region for their LED businesses in 2012 at US$3.6 billion with year-on-year growth of 17%; followed by South Korean firms with US$3.2 billion and growth of 49.6%, thanks to vertical integration and the fact that output value figures also include modules; and Taiwan-based players with US$1.69 billion, due to their focus on LED component production. However, if modules are removed from the output value equation, Taiwan-based manufacturers will in fact outperform their South Korean counterparts in 2012.

China-based manufacturers that have recently prospered are projected to increase output value by 30% year on year to US$1.42 billion in 2012 as their newly acquired MOCVD capacity comes online. However, most China-based manufacturers mainly produce medium and low power LEDs, and as such pose little threat to the global industry standing of other players in the Asia region at the current time.

Table of contents
Price: NT$48,000 (approx. US$1,685)
Realtime news
  • Compal to resume production at Vietnam factory, says president

    IT + CE | 47min ago

  • Compal smartphone shipments reach 20 million in 2014, to double in 2015

    Mobile + telecom | 59min ago

  • Wistron to make investment in telematics device maker

    IT + CE | 1h 3min ago

  • Acer ranks as top consumer notebook vendor in Brazil in 3Q14

    IT + CE | 1h 5min ago

Pause
 | 
View more

2015 global notebook demand forecast

RESEARCH EXTRAS | Nov 28, 11:01

According to Digitimes Research, global notebook shipments will decline by 2.7% in 2014 to 170 million units and shipment totals in 2015 will continue to show a decline. While the business notebook market benefited 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...

China touch panel industry – 3Q 2014

CHINA TOUCH | Nov 28, 18:54

The third quarter is a traditional boom season for touch panels and therefore China-based touch panel makers saw shipments increase for all major applications.

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...

Wireless broadband developments in Southeast Asia markets
Trends and forecasts for the China FPD industry, 2014-2017
TD-LTE market developments and forecast, 2014-2016
  • 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.

  • 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.