Global white LED Market: Japan's dominance challenges

"Edison invented the light bulb after 130 years, white LED became a striking force of a revolution in the. This revolution is making the field of quiet lighting technology changes. Although Japanese companies used to dominate the global white LED market, but now the European and American companies are rapidly catching up. The gap between Japan and South Korea and Taiwan, the industry is also shrinking, in the field of LED large investment in Jin Lingxin's competitors show amazing growth rate. Japan is facing the threat of promising LED, "said AkiraMinamikawa, vice president of iSuppli japan. He believes that the fate of the Japanese semiconductor industry worse, because of its lack of decisive action.

Japan's white LED dominance challenges

Not long ago, the survey also showed that Japanese manufacturers dominate the white LED market. Nichia (Nichia) accounted for more than 60% of the global market, ranked second in the ToyodaGosei accounted for about 20%. Japanese companies accounted for more than 90% of the total supply of white LED.

But recent situation has changed significantly. According to a survey of iSuppli company, Nichia share is reduced by half, down to 30%, while ToyodaGosei fell below 10%. At the same time, the German OSRAM and the United States Cree ranking rose to second and third, respectively. Taiwan manufacturers running behind, trying to squeeze into the first phalanx.

Manufacturers in South Korea, Samsung and LG are currently ranked, have announced plans to expand the production scale of investment. Once their new plant put into operation, will jump into the ranks of first-line manufacturers.

According to iSuppli, the white LED market size in 2004 was about $2 billion, in 2012 is expected to grow to $4 billion in 2020 to more than $9 billion.

White LED will be widely used in various occasions, from residential, office and shop lighting, until the LCD TV backlight and automotive lighting. Africa and other regions, as well as 1 billion people do not have a light bulb available, when the LED lighting into these areas, the market will certainly become very large.

At present, most of the white LED blue LED and yellow phosphor combination. About the famous blue LED patent lawsuit between the United States University of California professor ShujiNakamura with his former employer arias, out of court settlement has been reached, Nichia only to Nakamura a little more than $8 million to pay about $200 million, far below the requirements. The Nakamura of Japanese enterprises greatly disappointed, especially for Nichia brood on leaving the United States finally. This raises fears of brain drain in japan. About the blue LED production Nichia patent expires, then the world manufacturers will begin mass production of white LED.

Japanese manufacturers are losing control of the global market? Minamikawa explained: "enterprise indecision, can not make a bold investment decisions, when the business opportunities will come. Although they claim that their plans are very cautious, the reality is that they have been beaten by more rapid overseas competitors. With the decline in the status of Japanese manufacturers in the IT and consumer electronics market, they do not have the financial strength of strategic investment in the semiconductor field. "

But facing overseas interbank threat, Japanese companies have to cheer up, and make the investment plan. Nichia announced, will build a new factory in the city of four. SHARP's two factories are converting, from the production of IC into production LED. Toshiba plans to invest more than 30 billion yen ($300 million) on LED, including the construction of a new plant. MITSUBISHI chemical also made it clear that intends to expand the production of white LED chips.

An equipment manufacturer insiders on this scene to calm view: "even if Japanese companies decided to invest in a white LED, they will be very difficult to buy equipment. MOCVD is the key equipment for the production of LED, and only two major MOCVD system vendors: Aixtron in Germany and the United States Veeco. Japanese equipment manufacturer Dayang acid (TaiyoNipponSanso) to most Japanese manufacturers supply LED MOCVD system, the lack of sufficient capacity to meet the demand. The limited number of equipment on the market, it is difficult to buy. More than and 150 sets of equipment has been ordered by South Korean samsung. The industry's argument is that only in the market to buy second-hand equipment. "