Taipei, Thursday, August 21, 2014 09:05 (GMT+8)
partly cloudy
Taipei
30°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
  • Roughly 400 vendors preparing to feature new technologies at Touch Taiwan

    Displays | 10h 35min ago

  • Passive component maker Chinsan to kick off new plant in 1Q15

    Bits + chips | 10h 50min ago

  • Foxconn taking aggressive moves to enter IoT industry

    IT + CE | 10h 54min ago

  • Digitimes Research: Taiwan LCD monitor shipments grow in 2Q14

    Displays | 10h 57min ago

  • Japan market: HTC unveils HTC Butterfly 2

    Mobile + telecom | Aug 20, 19:00

  • Taiwan July export order value down on month, up on year, says MOEA

    Bits + chips | Aug 20, 18:58

  • Digitimes Research: Entry-level smartphone may help Amazon extend e-commerce reach

    Before Going to Press | 11h 52min ago

  • US ITC to probe Spansion MCU products for alleged patent infringement

    Before Going to Press | 11h 53min ago

  • Market watchers concerned about Acer inventory, CEO says inventory management a priority

    Before Going to Press | 11h 53min ago

  • Samsung to produce DRAM chips at Line-17 fab, causing concerns of oversupply

    Before Going to Press | Aug 20, 20:33

  • Acer unveils 8-core 4G LTE smartphone in Taiwan

    Before Going to Press | Aug 20, 20:27

  • HTC to push Desire and Butterfly family products to US and Europe

    Before Going to Press | Aug 20, 19:54

  • Scientech to ramp wet-process semiconductor equipment

    Before Going to Press | Aug 20, 19:49

  • Roughly 400 vendors preparing to feature new technologies at Touch Taiwan

    Before Going to Press | Aug 20, 19:36

  • Penetration rate for Ultra HD TVs likely to reach 15% in August

    Before Going to Press | Aug 20, 19:27

  • Touch panel makers see G/G, G2 demand increase

    Before Going to Press | Aug 20, 19:27

  • EIH sees improved 2Q14 performance; expects growth in 3Q14

    Before Going to Press | Aug 20, 19:16

Pause
 | 
View more

Analysis of China's revised domestic semiconductor industry goals

RESEARCH EXTRAS | Jul 16, 18:09

Facing a funding shortage for local IC manufacturers, the China State Council in June 2014 published guidelines to strengthen government support for China's semiconductor industry, while stating the short-, mid-, and long-term goals for the related industry supply...

The transition to 4k TV - UHD TV market forecast, 2014-2017

RESEARCH EXTRAS | Jun 26, 13:59

Ultra HD TV vendors are facing challenges due to an overall slowdown in the TV industry and are concerned whether relative supply chains can provide compatible Ultra HD content and services. However, trends show that content makers as well as panel and chip makers...

China smartphone market and industry – 2Q 2014

CHINA SMARTPHONE | Aug 12, 17:41

A delay in the launch schedule for low-cost 4G smartphones resulted in a mere 4.8% increase in second quarter shipments in the China market. However, with telecom operators planning on increasing their subsidies in the second half of the year, demand will be...

Taiwan small- to mid-size LCD panels – 2Q 2014

TAIWAN FPD | Aug 6, 21:18

Taiwan makers' small- to medium-size panel shipments reached 351.4 million units in the second quarter of 2014, up 16.8% sequentially but down 2.8% on year.

Global tablet market – 2Q 2014

GLOBAL TABLET | Aug 1, 18:12

According to Digitimes Research, global shipment of tablets reached 55 million units in the second quarter of 2014, down 4.5% from the previous quarter and up 17.9% year over year.

DIGITIMES Translation Services
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.