The Global LED Industry Eliminates Taiwan's Enemy

The global LED industry has entered a period of changing forces. As Japanese lighting companies set off price wars and led LED lighting to take off in the first year of the year, South Korea and mainland companies are also in a hurry, spurring regional industry competition and prompting LED companies in Taiwan to accelerate the application of lighting. However, the LED production competition in 2011 may cause oversupply and the competition between Taiwan and international manufacturers will also be intensified.

Large-size LCD backlight and LED lighting are regarded as the twin engines of growth momentum in 2011. The industry estimates that the global LED lighting penetration rate will reach 3% in 2010. In 2011, LED lighting penetration rate is expected to reach 6 to 10%, especially The development of LED lighting in Japan has attracted the most attention. Due to fierce competition in the market, driven by the Japanese government in 2010, the prices of LED bulbs of first-tier manufacturers, including Toshiba and Panasonic, have been cut. LED manufacturers in Taiwan estimate that the cost will be reduced. Under the trend, LED bulb prices will continue to slide in 2011.

LED makers pointed out that the current European and American manufacturers of LED lighting products cost about 1.5 US dollars per watt, Taiwan factory price is in the 1.2 US dollars, with cost competitiveness, due to the shortage of LED supply in 2010, the year's price decline is flat, until the fourth quarter There is a noticeable drop in prices, among which high-power LED prices have fallen by about 10 to 15%. Looking ahead to the reduction of LED TV's cost in 2011, it will lead to more LED die production capacity for lighting applications. It is expected that high-power LED lighting will face at least a 15 to 20% price drop.

The LED industry estimates that Taiwan's LED industry output in 2010 will reach NT$151.6 billion, which is about to grow! 60%, the 2011 production value is expected to challenge 201.5 billion yuan, 2012 and 2013 output value is expected to challenge 250 billion and 380 billion yuan, respectively, as the world's LED industry output in the fastest 3 years will challenge 50 billion US dollars As a result, regional industry competition has entered a white-hot spot.

Compared with the LED package and module output value of each region in the world, Japanese manufacturers accounted for 31% of market share, ranking first, while Taiwan and South Korea respectively reached 20%, Europe and the United States each accounted for about 10%, including South Korea. In 2009, the market share of the industry was only about 10%, but it quickly jumped to 20% in one year, which is in line with Taiwan's LED industry. The industry is even more predicting that South Korea's LED output value will continue to grow in the next two years. It is expected that the market share of LED packaging will increase to 24 to 25%, and the market share of LED packaging in Taiwan will be still in place.

However, the LED industry pointed out that since South Korea's LED plant capacity utilization rate is still low, since the second half of 2010, the pace of production expansion has slowed down significantly. On the contrary, the Taiwan plant has benefited from the huge increase in the demand for TV backlighting from Korean factories, and has increased Taiwan's LED procurement volume has led to a significant increase in LED production capacity. However, mainland LED manufacturers are rushing to catch up. The upstream MOCVD machine platform may open up in the second half of 2011. The industry is worried that once South Korea’s LED plant technology improves, the capacity of mainland manufacturers will also increase in volume, 2011. It is feared that there will be an overcapacity supply competition, and the LED market will enter into competition with price competition, and the price drop will probably exceed 30%.