During the first half of 2014, China’s LED industry kept up high growth rates, a trend extended from 2013. Industry insiders have reached a consensus that LED lighting demands will propel this trend well into 2016. Related industries have started production expansion, talent headhunt, and distribution channels establishment. These companies have stuck it out during the LED industry’s initial restructure phase, and do not want to miss out on the exponentially growing LED lighting market.

Taiwan-based manufacturers Epistar and FOREPI today announced merge plans. Through conversion of shares, FOREPI will become a 100 percent fully owned subsidy of Epistar. The trend of acquisitions within the LED industry will continue in 2014, observed LEDinside, a research division of TrendForce. Epistar’s merger with FOREPI will improve production capacity, cost management, as well as client and product integration. After the merge, the two companies will also be able to jointly resist market threats from Chinese LED chip manufacturer San’an Optoelectronics (San’anOpto). 

Chinese LED package manufacturers sales performance in 2013 was mediocre, the LED package market value was up slightly by 16 percent due to plunging prices, according to the latest “2014 Chinese Package Industry Market Report” by LEDinside, a research division of TrendForce. 

Apple’s iWatch to be released in late 2014 will be using sapphire watch covers, according to the latest “2014 Global Sapphire Market Report” by LEDinside, a research division of TrendForce. iWatch sapphire watch covers are expected to account for six percent of global sapphire market demands, the research organization projected.

Global LED commercial lighting market penetration rate this year soared, with growth projected to reach 23% by the end of the 2014, according to the latest “2Q14 Silver Member- Commercial Lighting Market” by LEDinside a research division of TrendForce.   

LED price for lighting applications have dropped around 3-7 percent in 2Q14. Similarly, backlight-use LED prices have also seen a decline, dipping around 5-10 percent, with direct-type TV backlight-use LEDs decreasing by 13 percent due to fierce market competition, according to the recent price report from LEDinside, the green energy research division of TrendForce.

May 27, 2014---The Chinese LED market has seen a rapid rise in demands. Expansion plans by several LED chip manufacturers boosted sapphire substrate demands. Sapphire substrate manufacturers are speeding up Chinese market strategies, due to high tariffs and emergence of Chinese LED chip manufacturers, according to the latest “2014 Global Sapphire Substrate Market Report” by LEDinside, a research division of TrendForce.

May 15, 2014---LED chip market scale reached RMB 9 billion (US$1.45 billion) in China in 2013, a YoY of 16%, according to the latest “2014 Chinese LED Package Industry Market Report” by LEDinside, a research division of TrendForce. 

China’s LED package industry market scale reached US $7.2 billion in 2013, up 20 percent from the year before, according to the recent “2014 China Package Industry Market Report” from LEDinside, a green energy research division of TrendForce. China has become the largest manufacturer of LED products. Rapidly increasing LED lighting penetration rate is driving up LED component demand volume, making China the most contended market among LED package manufacturers.

As Taiwan becomes embroiled in nuclear energy debates, pro-nuclear and anti-nuclear activists are becoming focused on alternative energy solutions and energy saving benefits. Taiwan could cut 45% of energy consumption by simply overhauling current luminaires with LEDs, resulting in lower power consumption and redistribute energy resources, according to a joint study by TrendForce research divisions LEDinside and EnergyTrend.  Considerable energy can be conserved from the lighting sector’s transformation alone, based on the research organization’s analysis of LED lights energy efficiency benefits, international market experience, and related statistics in Taiwan.

Out of sapphire substrate non-LED applications, mobile devices have shown strongest demands, according to “2014 Global Sapphire Substrate Market Report” by LEDinside, a research division of TrendForce. Sapphire substrate non-LED application is projected to reach 32% this year, with mobile device applications taking a 21% share, said LEDinside.

For the cool white NPW LEDs, the spectrum is similar to the conventional white LEDs obtained from the blue LEDs combined with yellow phosphors. The blue emission originates from the upper sidewalls of nanopyramids, and yellow light is mainly emitted from the lower ridges with respect to the base of nanopyramids. 

Affected by the global economic downturn, there has been rising number of city bankruptcies. In turn, city management are increasingly valuing sustainable development. Outdoor lighting construction and maintenance costs have gradually increased over the years in city public lighting expenditures. City managers are creating suitable living environment that uses low investment and maintenance costs and can be met on a limited budget. 

Affected by the global economic downturn, there has been rising cases of city bankruptcies, which has led to city management increasing value of sustainable development. Among cities public lighting expenditures, outdoor lighting construction and maintenance costs have gradually increased over the years. City managers are also focusing their attention to making suitable living environment on limited budgets with low investment and maintenance costs.

Leaving 2013 behind, the LED industry is optimistic about the  2014 market. The editorial staff of  LEDinside in China has compiled a list of six research articles analyzing the future trends anticipated for 2014 including lighting, backlighting, and flash LED.   

LEDinside analysts revealed 2014 LED market trends during the LEDinside Chief Analyst Market Seminar organized by TrendForce at Shenzhen Marco Polo, China on Dec. 19, 2013. Renowned LED brands including Cree, Samsung Electronics, HC Semitek Corp., Refond and Honglitronics attended the seminar. The main agenda of the seminar was to discuss global LED trends in 2014 and Chinese market developments. LEDinside analysts approached the subject from lighting, backlight and package perspectives to give a comprehensive analysis. Below are some of the trends observed by LEDinside analysts:

Spurred by Chinese TV manufacturers’ demands, LED TV penetration rates reached 95% in 2013, according to LEDinside, a subsidiary of global research institute TrendForce. The organization estimates LED TV will completely replace CCFL by 2014, and annual LED TV shipment volume will grow at YOY 3% to 209 million. However, LED for backlight TV applications market value is expected to decrease 17% to US$ 2.41 billion. The main cause behind LED TVs growing shipment volume, but lower market value has been direct-type LED TVs reduced usage of LEDs and its high penetration rate of more than 60% in 2014. Compared to edge-type LED TVs, direct-type LED TVs only uses half the number of LEDs.

Spurred by LED lighting and mobile device market demands, sapphire substrate manufacturers have been actively expanding their production capacity, according to TrendForce subsidiary LEDinside’s “Global Sapphire Substrate Market 2013” research report. The top five sapphire ingot manufacturers for instance, have seen 2-inch equiv. sapphire substrate monthly production capacity grow by 75% to 7800Kmm compared to 2012.

4Q13 Silver+ Member Report- Outline Lighting Market Development Trend-Outline Lighting Level Package Market Trend- Product Development and Strategy  Trend One: Rising Commercial, Industrial And Outdoor Lighting Markets Trend Two: Mid Power LED Market Value To Surpass High Power LED For The First Time in 2013

4Q13 Silver+ Member Report- Outline Lighting Market Development Trend-Outline Lighting Level Package Market Trend- Product Development and Strategy  Trend One: Rising Commercial, Industrial And Outdoor Lighting Markets

In 2013, the LED package market value was US$ 12.5 billion and is expected to reach US$ 13.39 billion (Year-on-Year +7%) in 2014, according to a LEDinside gold member report. Tablets and smartphones are still highlights of the LED market in 2014. The two applications have shown stable growth as it benefited from increased resolution and market demands. As for lighting applications, LED package value and lighting applications greatly increased in 2014, with most evident growth in industrial, commercial and outdoor lighting markets. LEDinside observed several changes i...

Affects from the termination of China’s Home Appliance Subsidiary Programs in 1H13 caused LED backlight market demands to ease in June and July this year, according to LEDinside, a green energy research subsidiary of global research institute TrendForce. However, some chip manufacturers have reflected a rebounding market, due to stable market orders in 2H13 and several TV manufacturers inventory restock demands. In 2H13, the LED market might show signs of moderate growth during peak season in 3Q, and off-peak season in 4Q will deliver a solid performance.

Starting from 2012-2014, bans on incandescent lights has led to the gradual entry of LED products in the residential lighting markets, according to a latest search report by LEDinside, a research division of TrendForce. Improved LED luminous efficacy and lowered LED product prices contributed to higher consumer acceptance levels and rising penetration rates. Japan was the largest LED residential lighting market in 2012, followed by Europe and North America. However, China’s residential lighting’s global market share is also growing.

According to LEDinside, observed from the 2013 regional residential lighting market development, the Chinese market proportion will increase from 19% in 2012 to 24%, becoming the fastest-growing regional market. In terms of the European market, the implementation of comprehensive ban of incandescent lamps and the economic recovery after the European debt crisis gradually had a positive impact on LED light bulb market, and the LED light bulb market penetration rate is expected to increase.

LED die manufacturers are stabilizing raw material sources in the wake of rising LED lighting demands, and competition from other sapphire substrate applications. Epistar has reached a Patterned Sapphire Substrate (PSS) production capacity agreement with Crystalwise and Rigidtech Microelectronics (Rigidtech), in which two PSS production lines from each company will be fully supporting Epistar. Due to PSS higher prices, it is estimated substrate manufacturers’ 3Q13 revenue will hit double digit growths.

Although the market is dominated by low priced direct-lit LED TV’s, top international brands are planning to reduce direct-lit product shipments, due to impact from the end of China’s energy-saving subsidies and increased costs accrued from slimmer product designs. According to recent information, though, top international manufacturers are cooperating with secondary optic lens manufacturers to expand lighting angle from 140-150 degrees to 160 degrees. 

Important global LED application bases, the EU and U.S. high technology demands, safety standards, and technological barriers are impacting China’s LED exports. These technological barriers have become the biggest export obstacle for Chinese LED lighting products, such as LED strip display. In recent months, the EU and U.S. raised import standards are adding to the woes of Chinese LED lighting manufacturers and putting China’s 8,000 plus LED manufacturers on an arduous road to export goods. In the overseas market, Chinese manufacturers are “under siege” by Europe, U.S. and Japan’s technological barriers, and with a sluggish domestic market, manufacturers face an embarrassing oversupply situation.

Strong demands for mid-power LED products have increased shipments of Epoxy Molding Compound (EMC) lead frames. Taiwanese and Chinese LED package manufacturers have jumped into EMC lead frame technology. Taiwanese LED package manufacturers Everlight, Lite-On Technology (Lite-On), Unity Opto, and Advanced Optoelectronic Technology (AOT) are producing EMC package components. Chinese manufacturers including Lighting Optoelectonic Technology (LOT) and Refond possess EMC package component production capacity. Market research shows EMC lead frame prices are falling quickly, which is why most manufacturers are trying to improve price/performance ratio by applying EMC lead frames in 2-3W mid / high power LEDs, according to LEDinside. In the past, most EMC lead frame applications were for 1-2W LED.

Affected by LED chip’s consecutive price drop and efforts to control costs, Taiwanese chip manufacturers including Epistar, FOREPI, and others are turning to Chinese sapphire substrates. A move that directly contends Taiwanese sapphire substrate manufacturers’ price raise plans, and is expected to impact 3Q13 operations of companies including Crystalwise Technology (CWT), Tera XTAL Technology’s (Tera XTAL) and others.

Chinese banks’ recent credit crunch has impacted the LED industry. More than 100 LED manufacturers have defaulted as a result in Eastern and Southern China this year. Taiwanese LED manufacturers have emerged as the beneficiaries of the industry restructuring, as foreign investors purchase stock from industry leaders Epistar and Everlight.