Taipei, Thursday, January 19, 2017 10:23 (GMT+8)
showers
Taipei
18°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
  • Nanya sets price for ECB issue

    Bits + chips | Jan 18, 21:45

  • Worldwide semiconductor revenues grow 1.5% in 2016, says Gartner

    Bits + chips | Jan 18, 21:43

  • GaAs foundry Wavetek positive about compound semiconductor market

    Bits + chips | Jan 18, 21:40

  • Apple reportedly planning 3 new tablets for 2017

    Before Going to Press | 12h 20min ago

  • OLED smartphone demand rising

    Before Going to Press | 12h 21min ago

  • TPV eyes 88 million display device shipments in 2017

    Before Going to Press | Jan 18, 21:34

  • China lowers subsidies for new energy-powered cars in 2017

    Before Going to Press | Jan 18, 21:20

  • Innodisk to see revenues drift downward in 1Q17

    Before Going to Press | Jan 18, 21:19

  • Equipment maker GPM sees clear order visibility through 1Q18

    Before Going to Press | Jan 18, 21:19

  • MediaTek to post 15-20% revenue decrease in 1Q17

    Before Going to Press | Jan 18, 21:18

  • Lite-On storage device shipments to be affected by tight SSD supplies in 1Q17

    Before Going to Press | Jan 18, 21:18

  • Sony Mobile to ship up to 17 million smartphones in fiscal 2016

    Before Going to Press | Jan 18, 20:51

  • HTC to release new VR games, accessories to promote HTC Vive

    Before Going to Press | Jan 18, 20:50

Pause
 | 
View more

Global AP demand forecast, 2017-2020

RESEARCH EXTRAS | Jan 16, 12:01

Digitimes Research expects global application processor (AP) shipments to increase more than 8% in 2017 and surpass the 1.9 billion mark, with smartphones remaining the main application. After slumping in 2015, Qualcomm returned to form in 2016 and will continue...

Taiwan server shipment forecast and industry analysis, 2017

TAIWAN MOBILE DEVICE | Nov 28, 10:20

According to surveys and analyses conducted by Digitimes Research, revenues generated from sales of server motherboards, servers, storage systems and related network system equipment by Taiwan-based vendors will continue on an upward trend to reach NT$558.5 billion...

China smartphone market and industry – 3Q 2016

CHINA SMARTPHONE | Dec 13, 18:51

Smartphone shipments in the China market reached 112.3 million units in the third quarter, up 5.8% on year and 5.2% on quarter. China-based telecom carriers continued to offer subsidies to encourage existing 2G or 3G service users to switch to a 4G service and...

Global tablet market - 3Q 2016

GLOBAL TABLET | Dec 7, 11:20

Global tablet shipments in fourth-quarter 2016 are expected to see an annual decrease of 20%.

China smartphone AP shipment 4Q forecast

CHINA SMARTPHONE AP | Dec 2, 14:32

Digitimes Research estimates shipments of AP for smartphones and tablet PC in China in the fourth quarter of 2016 will show a growth of 11.6% on quarter.

Advantest
Display panels for wearable devices
Analysis of China revised domestic semiconductor industry goals
  • 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.