Wednesday, 27 July 2011

China LED chip production ability increase quickly, this will influence the low-end market to make the price of chip down 30-40%

Expecting LED market of this year, they expect sales of high power LED in the whole world will be around US $14.1 billions, increase 30% yearly. But with production ability increasing of Chinese market, the cost of LED will be down obviously, they guess the LED cost will be down 30-40% in low-end market.

In China, government policyowner improve the development of LED industry, like government grants on MOCVD machine, they guess this year there will be about 600 sets MOCVD machines will be installed, & LED chip producing ability of lots of companies will be also increase much.

In the past, Taiwan companies have much higher expertise and they enjoy much higher advantages, so they sell secondary Led chip to mainland China, but with the improvement of expertise of chip encapsulate, china made LED chip will influence Taiwan secondary chip market.

Look at international LED market, in year 2010, sales scale of high power LED is around US $10.8 billions, increase 90% yearly. Among this, LCD & transportable product market increase strongly, professional say, in this year, International sales scale will arrive US $14.1 billions, increase 30%, and LED TV and LED monitor sales scale will also increase.

But in Asian developing countries, professional say, in year 2010 Korea high power LED products market share increased to 23%, they control chiefly LED TV market. With improvement of expertise of developing countries, will narrow the distance between developed and developing countries, and IP right won't be the barrier to go in to LED market.

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