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LED adoption in automobile market not to pick up until 2007

Kevin Hsu, Taipei
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The penetration rate of LEDs in the car-use taillight market will approach 10% in 2007, up from almost 8% this year, according to sources at Taiwan-based LED packaging houses. However, LED development for car headlight applications is still bogged down by complex circuit designs and heat dissipation problems, as well as cost concerns, the sources indicated.

For car headlights, the adoption of LEDs should start to pick up greatly from 2010, the sources project. In Taiwan, Everlight Electronics, Lite-On Technology and Bright LED Electronics have entered development of LED car headlights, the sources noted.

Statistics compiled by Taiwan's Automotive Research & Testing Center (ARTC) stated that 100-200 white LEDs is required to equip one car. Based on an annual output of 57 million cars, at least 5.7 billion white LEDs will be used annually, according to ARTC. In 2008, the car-use high-luminance LED market will grow to US$886 million, ARTC projects.

Lite-On has expanded its presence in the car-use LED packaging market to compete against Everlight, currently the largest LED packaging house in Taiwan, when it announced in March it would acquire Taiwan-based auto parts manufacturer Stark Technology, sources in the Taiwan LED packaging stated. As reported on March 7, Lite-On reached an agreement with Yulon Nissan Motor to co-develop LED-based headlights for automobiles. However, Yulon intends to lower its risk by diversifying its supplier base to include Everlight, which has entered volume shipments of red and blue LED modules to the car manufacturer, according to the sources.

Bright LED is shipping LEDs for car-use brake lights to China, the company said, adding that the orders currently account for less than 10% to its overall revenues. The LED maker is also evaluating the possibility of setting up a design unit for car-use LED modules in the future, according to the company.

Article translated by Jessie Shen and edited by Eric Mah