Government support and general lighting drive LED market growth

Light-emitting diode (LED) in China is very hot. According to iSuppli company, although China's LED market is still very young, but the Chinese government is investing heavily in the technology.

Compared with the United States and Taiwan, China, LED manufacturers in the technical ability is relatively backward, and the lack of an experienced management team and R & D engineer. China also lacks core and upstream intellectual property (IP), such as MOCVD devices and LED wafers. However, Chinese LED manufacturers can get sufficient funds from the government, this advantage allows them to seize the huge demand for China's LED in the near future.

In order to encourage enterprises to invest in the LED market, the local government Chinese average for each MOCVD equipment procurement to provide at least 70% or 1 million 500 thousand dollars in subsidies. In addition, the local government also provides tax and Hydropower concessions.

Optimistic forecast of iSuppli company, from 2010 to 2012, LED annual investment will reach $3 billion 500 million, indicating that LED supply chain China will pose a threat to the global industry in 2015.

In addition, with the support of the government and LED has gradually entered into the field of application of liquid crystal TV and general lighting new, iSuppli predicted, LED Chinese 2014 revenue will reach $7 billion 100 million, and $3 billion 400 million in 2009, the compound annual growth rate of 12.8%. Ultra high brightness (UHB) LED faster growth in 2014 sales will rise from $686 million in 2010 to $1 billion 800 million, a compound annual growth rate of 26.9%.

ISuppli's forecast for China LED market in 2009-2014

LED market dispersion

China LED market covers many fields, including LED display, street lighting, general lighting, traffic signals, mobile phone keyboard and digital camera flash and backlight, large size LCD TV, notebook and other displays. Overall, China's LCD backlight market will be strong growth in 2014 sales will rise from $468 million in 2010 to $1 billion 200 million, a compound annual growth rate of 25.7%.

In addition to various applications of LED, the general lighting will be the new long-term demand drivers. In view of the global emission reduction trend, the general lighting market demand for LED will grow. LED low power consumption and conducive to the environment. ISuppli estimates that in 2010 the general lighting market LED shipments will account for 18.4% of the overall LED market.