Taiwan LED Industry Overview
Taiwan Takes the Leading Position in the Global LED Market
The LED industry in Taiwan initiated in the 1970’s and began with LED production and then moved on to include LED packaging. From 1990’s, Taiwan started to produce LED chips and the technologies kept progressing - from red, yellow, green LEDs - to blue and white LEDs and as far as the current high brightness LEDs. Emission efficiency continues to improve. Taiwan is now in the first place internationally in LED chip monthly production capacity and in second place in production value. Taiwan’s LED industry strengthens in the complete development of the semiconductor industry and the complete industry value chain.
Monthly Production Capacity Takes First Place Internationally
In the production volume of GalnN Blue LEDs and Epi wafers, Taiwan has taken the first place for monthly capacity in the world - up to 1.15 million units per month at December last year (See Figure1). Due to the company merge of Epistar, Eptech and Allied Material, the ‘New Epistar’ became the largest GalnN Blue LED maker in the world, with the monthly capacity of 900 million units exceeding Nichia ‘s 600 million units.
Figure 1 : Global Production of Blue GalnN

Source: PIDA
Taiwan Takes the Second Place in LED Packaging
The production value of LED packaging in Taiwan will reach US$ 1.42 billion in 2007 accounting for a global market share of 17% and second only to Japan.
It is estimated that the annual compound growth rate of Taiwan’s LED packaging production value will be 12% during 2005-2009, which is higher than 9% of Japan, but lower than 27% of China and 20% of South Korea.
Figure 2 : Global LED package production value
Unit: USD 1 million

Source: PIDA
Taiwan has taken the first place internationally in LED chips annual capacity and second place in production value. This has not been an easy accomplishment bearing in mind such stiff competition from companies like: Nichia, Oram, Cree and Lumileds. Taiwan’s LED industry possesses the strengths of a complete semiconductor value chain, excellent human resources and the integration from upstream to downstream supplier, such as with materials, facilities, and related components. This ensures that the quality and price of chips and packaging products are very competitive. Moreover, in the horizontal integration aspect, after the Epistar merge, the domestic price competition will be less, which will help Taiwan’s LED industry to compete with other leading companies around the world. (For more information please access OLIE at www.pida.org.tw/olie.)
|