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Research Report on Global and China s LED Industry 2011 2012 ‘Aarkstore Research com’

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					 || Research || Research Report on Global and China's LED Industry, 2011-2012
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LED, a kind of semiconductor diode, can transfer electrical energy to optical energy, and emit
yellow, green, blue and other visible light as well as infrared and ultraviolet invisible light.
Compared with small incandescent bulbs and neon lamps, LED is characterized by low working
voltage and current, high reliability, long service time, easy adjustment of brightness, etc.


The entry threshold has been lowered gradually from upstream industry to downstream industry
of the LED industry chain. The upstream industry is single chip and its epitaxy, the midstream
industry is LED chip processing, and the downstream industry is package test and application,
among which upstream and midstream industries are the fields with most fierce international
competition, highest business risks, rich technology content and huge capital investment. In LED
industry chain, the profit of LED epitaxial chips and chips accounts for about 70% of the
industry, that of LED package accounts for about 10%-20%, and that of LED application also
accounts for about 10%-20%.


Under the circumstances of global energy crisis and increasing requirement of environmental
protection, energy-saving, safe, micro and environmentally-friendly semiconductor LED lighting
with long service time and rich colors has been universally recognized as the principal way for
energy saving. Semiconductor lamps adopt LED as a new light source, whose consumption is
only 1/10 electricity of that of general incandescent lamps and service time prolongs 100 times
under the same brightness. In 2010, the scale of global LED market exceeded USD 10 billion. It
is predicted that the annual compound growth rate of global LED market will be over 20% in
2011-2015.


Global LED industry mainly concentrates in Japan, Taiwan, Europe and America, South Korea
and Mainland China, among which Japan occupies 50% shares and is the world's largest
producing country of the LED industry.

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