LED Makers May Smell Recovery Earlier Than Other Makers

Taiwanese LED makers feel they would smell market recovery earlier than manufacturers of other industries do when thinking of increased installations of LED into notebooks, monitors and LCD TVs as backlights and incremental uses of LED lights as well as LED outdoor signages.

The manufacturers say a wider range of LED applications expected in coming years than before makes them feel optimistic that their industry would likely recover earlier than other industries.

Industry watchers conclude several factors that may drive up global LED industry. In mainland China, bright outlook is linked to the economy`s government-encouraged demands for LED streetlights, household appliances, low-priced cellphones and low-priced notebook computers.

China`s State Council last year came up with 10 stimulus measures, planning to spend four trillion yuan by the end of 2010 to stimulate the world`s third-largest economy. Half of the budget will go to infrastructure constructions and LED streetlight installation is a major part. The mainland is estimated to erect 2.5 million LED streetlights throughout this year.

Chinese government`s hefty subsides for procurements of household appliances in rural areas have pushed up the mainland`s demands for LED by 20-30 percent since the Chinese New Year in late January, Taiwanese manufacturers estimate.

The mainland`s LED makers note that low-priced notebook computers equipped with LED backlight modules are helping fuel the demand.

LED makers in Taiwan and the mainland point out the manufacturers are running at average capacity of 70-80 percent, with some already at full capacity.

According to market research organization Topology Research Institute of Taiwan, an estimated 1.5-2 billion LEDs will go into notebook computers this year, representing a 28 percent penetration in notebook backlight market.

Source: CENS