The production value of Taiwan's light-emitting diode, or LED, sector is forecast to reach US$2.5 billion for 2010, marking a year-on-year increase of 43 percent, according to the Topology Research Institute. The island will account for 26 percent of global LED output, which is forecast to grow by 37 percent from 2009 to hit US$9.6 billion, the TRI said in a report released July 21. Global annual growth in looks set to surpass 10 percent for the first time since 2005, with Taiwan surpassing the world average by several percentage points. Given the industry's bright prospects, LED makers worldwide will increase MOCVD, or metalorganic chemical vapor deposition equipment, procurement by 232 percent this year to 720 sets. South Korea, Taiwan and mainland China will account for 36, 32 and 26 percent of the increase, respectively, the TRI forecast said. LED makers that cannot expand capacity to at least 50 MOCVD sets within the next three years face a dim future, according to the TRI. The pan-Epistar alliance has integrated and expanded production capacity by procuring 291 MOCVD sets, while Lextar Electronics Corp. and Formosa Epitaxy Inc. each have more than 50 sets. Growth in LED production is partially spurred by increased demand for LED-backlit televisions, according to the TRI. In 2010, newly added MOCVD sets will meet more than 70 percent of global demand for these products. Several of Taiwan's high-tech players, including Foxconn Technology Group, Taiwan Semiconductor Manufacturing Co., AU Optronics Corp. and Delta Electronics Inc., are already making initial forays into the sector, the TRI pointed out.
