The LED Industries in Target Markets …

General speaking, the LED industry is including the Up-stream (wafer), Mid-stream (die), and Down-stream (packaging), but in reality, it should include also the application, as no matter it is used for back-lighting, traffic sign, display or lighting, due to the characteristic of LED is so different from those applications in the conventional version, the users need to have knowledge of LED or need many engineering supports in terms of optical, mechanical, electronic and thermal design from their LED suppliers, as a result, almost all the

down-stream LED package manufactures are also engaged in the applications or offering LED modules, original equipment manufacturing (OEM), original design manufacturing (ODM ) or designing services for their clients. However, due to it would be too many to name the suppliers if we list all of them including the LED application providers and related

material suppliers, we therefore only reference the manufactures who engaged in LED wafer, chip and package as the LED industry.

LED industry in each country is various, however, Taiwanese LED supplies in principle are more focus on Chinese, Taiwanese, American, and European markets; As

Chinese and American markets are normally in charge by their branch offices or agencies, we therefore only target the Taiwanese and European market in this research.

2.4.1 LED Industry in Taiwan

In 1975, Taiwanese first LED manufacturer was set up, which acquired the equipment from Texas Instruments (TI), and manufactured the conventional LED for the applications such as, indicator of alarm, clock, later on the applications covered the

back-light of small size panel, mobile phone, PDA; as for the up-stream and mid-stream aspect, the first AlInGaP factory called United Epitaxy Company which was set up in 1993, the factory was merged by Epistar Corporation in 2005, and nowadays, there are over 10 major market players already.

Regarding the technology and usage, due to the dramatic technical improvement on the LED light output efficiency as well as on White LED, the applications were even widen to be used on many outdoor display, traffic sign, automotive lighting and general lighting, architecture lighting; and likewise, along with the technical development, the LED industry in Taiwan was transformed from the traditional to hi-tech oriented.

For example, the first field test and demonstration of LED traffic signal was installed in the Hsin-Chu Science Park in 1996, and then in year 2000 Taipei was the first city to use this new innovation, later in year 2003, one after another, Kee-Lung, Hsin-Chu, Tai-Chung, Chia-Yi, Tainan, and Kao-Hsiung also started to install LED traffic signal. By now, most of the cities and counties are already replaced the conventional traffic signal with LED’s, and in Year 2007, Taiwanese government launched a new project to replace all the remaining traditional traffic signals with LED’s within 3 years.

Besides this, the main applications of High Bright LED are including Display, Variable Message Sign (VMS), automotive lighting, landscape decorated lighting, commercial lighting, and now, the most trendy and highlighted application is LED street lamps and general lighting, as well as the back-lighting for big size TV panel.

In summary, the Down-stream LED packaging industry in Taiwan already been

developed for over 30 years with quite good technology recognition; and the Up-stream and Mid-stream industries were also well established since 1993; so, the overall Taiwanese LED industry structure is very well organized and completed, and play an important role in the global market.

LED industry in Europe was various in each countries, generally speaking, it was mainly started from the Western Europe like in Germany, U.K., The Netherlands, and then gradually to other area and Eastern European countries, and like their American

counterparties, the major European LED manufacturers also move their factories or use the subcontractors in other countries, first tier companies like Philips Lumileds and Osram had their factories and sales channel all over the world, and using their patent advantage and technology development capability to keep their leading position in the market. Another similarity between European and United State LED industries is there are only few LED package manufacturers, the industry is more strong and focus on offering design service and technological integration for the LED application.

As for application, there are mainly for industrial usages, and rare for the consumer products; the most applied usages are the outdoor Display, score board, VMS in high way and at airport, train station, bus station, as for traffic signal application, the first action taken in Germany was by Siemens to cooperated with Aixtron AG and the City of Aachen, and installed the LED traffic signals in Aachen in year 1998, and after a test period with

successful result, Siemens was rewarded by the city of Aachen to retrofit about 111 junctions with LED traffic signals.

There was also experimental installation of LED traffic signal in London and Bristol in 1998, this new innovation had been adapted since, yet with slow movement, and this year (2009) London mayor Boris Johnson has announced to spend 2.4 million (pound) to replace 3,500 conventional traffic lights at around 300 junctions with LED signals.

Many of the European countries has been installing LED traffic signals in their

nations, however, till now the biggest action was made in Spain, as in year 2008 Spanish government launched the biggest LED traffic signal tender of around 460,000 traffic signal heads, including 12”, 8”, 4” vehicle signals and pedestrian lights, both in 220V and 42V, to replace the traditional traffic signals with LED’s nationwide.

However, according to the regulation of European Union, the conventional light bulbs (fluorescent, halogen) will not be allowed in the market from September 2012, under the circumstance, the most trendy applications, besides the above mentioned industrial

applications, will be the street lamps and the general lighting for office and home application.