Taipei, Wednesday, August 24, 2016 05:05 (GMT+8)
scattered thunderstorms
Taipei
32°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
  • Taiwan premier worried about lack in investment in emerging industries

    Before Going to Press | 7h 45min ago

  • China-based smartphone vendor Meitu plans to offer IPO in Hong Kong in 4Q16

    Before Going to Press | 7h 46min ago

  • Taiwan July manufacturing production index up, says MOEA

    Before Going to Press | 7h 46min ago

  • Nvidia unveils Tegra Parker mobile SoC

    Before Going to Press | 7h 47min ago

  • HTC to take part in TGS 2016

    Before Going to Press | 8h 39min ago

  • Innolux, AUO to showcase 100-inch TV panel, AMOLED panels at Touch Taiwan 2016

    Before Going to Press | 8h 40min ago

  • Digitimes Research: China mobile AP shipments increase 8% in 2Q16

    Before Going to Press | 8h 42min ago

  • Digitimes Research: China IC designers expected to share up to 30% of 2016 global fingerprint sensor shipments

    Before Going to Press | 8h 48min ago

  • Taiwan market: Acer, Chunghwa Telecom cooperate to launch smart mobile office solution

    Before Going to Press | 8h 50min ago

  • Vendors mostly adopt on-board memory in Apollo Lake notebooks, say Taiwan makers

    Before Going to Press | 8h 52min ago

  • Sharp plans to buy back TV business operations in US, Europe

    Before Going to Press | 8h 56min ago

  • TSMC seeing 28nm chip orders slow down

    Before Going to Press | 8h 58min ago

  • TSMC orders equipment for NT$7.69 billion

    Before Going to Press | 8h 58min ago

Pause
 | 
View more

Taiwan server shipment forecast and industry analysis, 2016

RESEARCH EXTRAS | Apr 1, 15:47

Strong demand from the cloud computing market helped Taiwan's server shipments grow 12.5% on year to break 10 million units in 2015, accounting for 90.7% of worldwide shipments and the percentage is expected to grow to 91.1% in 2016. This Digitimes Research Special...

China smartphone touch-panel industry 2016 forecast

CHINA SMARTPHONE | Feb 6, 17:23

In 2016, China's smartphone panel capacity is expected to increase steadily, with BOE and Tianma expanding 6G capacity and GVO and Truly Optoelectronics increasing their share of handset panel production. This Digitimes Research Special Report analyzes the key...

Taiwan notebooks - 2Q 2016

TAIWAN MOBILE DEVICE | Aug 17, 14:37

Notebook brand vendors started replenishing their stocks in the second quarter after digesting their inventory in the previous quarter. The replenishment demand boosted their Taiwan-based ODM partners' shipments.

Taiwan LCD monitors – 2Q 2016

TAIWAN DISPLAY SYSTEM | Aug 16, 14:10

In terms on-year growth, the rebound that Taiwan's LCD monitor makers saw in their shipments in the first quarter of 2016 proved to be just a short break in a decline trend that continued in the second quarter. Such a trend is expected to continue through the...

Taiwan large-size LCD panels – 2Q 2016

TAIWAN LCD PANEL | Aug 11, 09:51

Taiwan's large-size LCD panel makers saw meaningful recovery in their shipments in the second quarter of 2016. Compared to the same period a year ago, Taiwan's second-quarter 2016 shipments grew slightly by 0.8%, but it already represents the first on-year growth...

China smartphone touch-panel industry 2016 forecast
Trends and forecasts for the China FPD industry, 2014-2017
The transition to 4k TV - UHD TV market forecast, 2014-2017
  • 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.