IMS Research: LED supply chain booms in 2011

April 1, 2011 - Shanghai: IMS Research's latest quarter of the GaN LED supply and demand report shows that 2011 is a bright year for the LED supply chain.

Blue-green LEDs have grown rapidly from 67% last year to $8 billion, and are expected to continue to grow 38% to $10.8 billion in 2011; the number of chips will grow by 49% to 62 billion. In terms of application revenue, the LED TV market is the fastest growing. It is expected that LED TV will account for 51% of TV panel shipments and is expected to grow by 93% to reach US$4.3 billion. Display and general lighting applications will also grow at a faster rate, at least 57% each.

Ross Young, senior vice president of IMS Research, believes that the LED market will accelerate in the first quarter of this year. Although the overall market was relatively flat in the second half of last year, it was mainly due to excessive panel inventory and a reduction in the number of LEDs used per panel. With the increase in LED applications in displays and TVs, as well as some new designs, such as 240Hz/3D and hybrid backlight panels, more LED chips will be used, and LED netbooks, monitors and TV panels are expected to grow by 13 percentage points to more than 50%. Billion. Q1 Samsung LED consumption is expected to be the highest, and last year was LG's lead.

IMS Research's report also shows that MOCVD shipments have not decreased. Based on IMS's demand for application market continues to 2015, LED manufacturers will continue to expand capacity to meet the fast-growing demand market. The chart below shows that GaN MOCVD suppliers Aixtron, Applied Materials, Jusung, Taiyo Nippon Sanso and Veeco have set new records, reaching 798 units. Market leaders Aixtron and Veeco still maintain their corresponding market share in Q3 last year, at 53% and 44% respectively. Throughout 2010, Veeco's market share increased from 31% to 42%, while Aixtron fell from 62% to 55%.

Regional research shows that China's market share has increased significantly, from 31% to 64%; while South Korea's share has fallen from 27% to 5%. The large-scale procurement of MOCVD in China is expected to continue into 2011, with a market share of more than 70%, thereby promoting more than 1,000 units in the entire MOCVD market to meet the rapid expansion of LED manufacturers.

As the number of MOCVD increases, the capacity has also increased rapidly, increasing by 75% in terms of 2 inches. Young believes that as more and more lighting suppliers begin to use 6-inch wafers, this provides a good opportunity for sapphire suppliers, as 6-inch wafers will maintain healthy premium pricing throughout 2011.

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