Under the background of the decline of upstream chip prices and improvement of luminous efficiency, the development of LED in the lighting field has attracted the attention of many investors. Industry sources pointed out that although the LED lighting output value accounts for 3.2% of the total lighting market output value in 2010, the penetration rate in 2011 is expected to reach 10%. In 2013, the penetration rate of global LED lighting output value will further increase to nearly 20%.

Capacity expansion accelerates chip prices. In 2010, large-scale advancement of chip production is a major highlight of China's LED industry. According to LEDinside, an industry research organization, China plans to increase the number of MOCVD LED devices in the next few years by more than 1200, including more than 300 MOCVD projects planned for 2010.

However, in anticipation of the continuous expansion of LED output value, the market is also worried about the excessive increase in LED chip production capacity. LEDinside pointed out that the price of LED chips in the third quarter of 2010 has started to show a larger decline. Among them, the LED size of the large-size panel application falls about 11% -16%, and the high power LED of lighting application falls more than 17%, the mainstream specification 100-120lm part, the drop rate reaches 20%; The LED chip is expected to still have 10 in the fourth quarter % of decline. It is understood that as one of the major production bases for global LED chips, Taiwan’s overall upstream chip plant revenue fell 2.8% in October from October.

In addition, technological progress is also one of the reasons for LED chip prices to go lower. According to reports, according to the LED set by the US Department of Energy, the target for 2010 is 140 lm/W. By 2020, the luminous efficiency of LED will reach 243 lm/W.

LED lighting will enter the ordinary people's homes in the third quarter of 2010, LED chip prices began to fall sharply, for the downstream packaging and application of the enterprise has brought opportunities for development, lighting is expected to become the LED industry after the backlight of the new important application areas.

DIGITIMES Research, a professional research institute, pointed out that although LED lighting accounts for a small amount of output in the overall lighting market, and is estimated to be 3.2% in 2010, LED lighting has become one of the major development policies in many countries. LED lighting is driven by national policies. The output value will increase rapidly.

"The incandescent lamp will be banned from sale worldwide in 2012, and LED bulb shipments will grow significantly. Estimated output value will be as much as US$8 billion. In terms of output value, the global LED lighting market penetration in 2011 Will exceed 10%." DIGITIMES predicts that in 2011 the global sales of LED bulbs will reach 600 million; in 2013 with the 40W and 60W traditional bulbs into the elimination schedule, the estimated LED bulb market size can reach 2.5 billion.

In addition, following the LED bulbs, many industry giants have also developed LED tubes. In the future, the price of LED tubes will drop by more than 30% each year. In addition, LED luminous efficiency will increase significantly. DIGITIMES estimates the shipment of LED tubes in 2013. Will reach 260 million. The agency also pointed out that after 2012, under the influence of factors such as LED manufacturers starting to attack the general lighting market, many countries starting to replace LED street lamps, and LED lighting prices falling by 30% each year, the penetration rate of global LED lighting output in 2013 will further increase. Increased to nearly 20%.