Taiwan’s LED industry set to grow by 18% next year, says PIDA

The Taiwanese government has ambitious plans to make the country the leading producer of LED lighting modules and light sources.

The LED industry in Taiwan is likely to grow 18% next year, according to the Photonics Industry & Technology Development Association (PIDA). As reported in an article on the CENS website, PIDA estimates that total revenue from the country’s LED industry will reach NT$86.4 billion (approx. US$2.8 billion) in 2010.

PIDA claims that, compared with other countries, Taiwan is currently the world’s no.1 LED supplier by volume and no.2 by revenue. Of the 2010 revenue of NT$86.4 billion, an estimated NT$54.4 billion (US$1.8 billion) will be generated by the LED packaging segment, says PIDA, and NT$32 billion (US$1.0 billion) by the LED chip-making sector.

LED backlights for mobile phones remain the major revenue earner of Taiwan’s LED industry, followed by LED devices used in electronic equipment. PIDA’s statistics show that LED road signs and LED billboards accounted for 20% of Taiwan’s LED industry revenue in 2009, up from 5% in 2008, while lighting applications comprised 7% of the revenue in 2009, also up from 5% in 2008.

PIDA said that LED TV and other consumer electronics applications will have a large impact on demand for LEDs, beginning this year.

The Taiwan government is aiming for the island to become the world’s largest manufacturing center for LED lighting modules and light sources. Its growth plans includes a target for Taiwan’s LED industry revenue to grow to NT$540 billion (approx. US$17.5 billion) by 2015, with the creation of 54,000 jobs.

The strength of Taiwan’s LED industry lies in its complete processing chain, with companies active in everything from LED epitaxial growth and LED wafer and chip production, to LED packages and modules. However, the industry’s weakness rests with its 80% dependence on imported manufacturing equipment and materials.

Industry executives have said that cooperation with mainland China is crucial to Taiwan’s LED industry in light of the mainland’s huge markets for LED lighting projects. In addition, they urged Taiwan government to offer lucrative incentives to users of LED lighting, and also to come up with industry standards for LED lighting.

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