Taiwan: 26% Of Global LED Chip Production In 2010

According to Topology Research Instititue (TRI) via Digitimes, Taiwan will account for 26% of global LED chip production in 2010. The LED chip market is expected to hit US$9.6 billion in 2010. Taiwan-based LED chip suppliers are forecasted to grow faster than the overall market at a rate of 43% Y/Y to $2.5 billion.

LED manufacturers in Taiwan are establishing joint ventures with local competition as well as upstream and downstream companies. The alliance among Epistar, AU Optronics (AUO) and Lextar is an example.

TRI also pointed to rapidly increasing procurement in MOCVD equipment in 2010. Expected growth is a staggering 232% Y/Y to 720 sets. Korea leads in expanding capacity with 36% of those 720 sets with Taiwan (32%) and China (26%) following suit.

China’s government is catalyzing the development of its local LED industry and the market potential, to say the least, is enormous. Taiwan’s Foxconn, Taiwan Semiconductor Manufacturing Company (TSMC), and Delta Electronics have made significant moves toward improving LED competitiveness.