Optolink International Edition 2009 Q4 Issue

Industry News4 Global Outlook of LED Industry

6 2009 Taiwan LED Industry Overview

8 Large-Sized LED Backlighting Taking the Lead

11 Light Bulbs Off, LEDs On

14 Finding a Niche: LED Special Lighting

19 Charles K. Kao –The Father of Fiber Optics

21 STSP Aiming for Sustainable Industry Development in Taiwan

Exhibition Watch

26 LED Lighting Taiwan 2010: A Greener Taiwan

28 LEDs in Prosperity— Special Report on LED Japan Conference & Expo 2009

Company Profiles33 LiteOn: Lit up the World

35 Everlight Prepares for the Future with LED Lighting

37 Epistar Expands to Secure its Edge in LED Industry

40 Harvatek Sailing to Success

42 Unity Opto Technology: Always Looking Ahead

45 Seoul Semiconductor— Leader of AC LED

ContentsOptoLink International Edition (OLIE)is a quarterly magazine published by the Photonics Industry and Technology Development Association (PIDA).

5F., No. 9, Roosevelt Road, Sec. 2.,Taipei, Taiwan, 10093.www.pida.org.twTel.: +886-2-2396-7780Fax: +886-2-2341-4559

Publisher: Frank Ma, CEO of PIDA

Editorial Team: Angel Chiou, Dan Guo, Murphy Lin, Stephy Chen, Karen Ho, Deaphne Kuo, Jason Lu, Delux Chen

Art Designer: Chiou-Ling Liu

Director of Market & Bussiness Division: Ryan Chung

Sales Contact: Ginger Chen, Allen Lee, Pamela Hsiao,Cathy Zhang, Ben Tsai, Henry Nieh, Jerry Lee

Advertising:Christine Chen [email protected]

Subscriptions:Simon Huang [email protected]

Editorial Submissions: Angel Chiou([email protected])

OPTOLINK Q4, 2009

14

http://www.pida.org.tw/olie/

358 21

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cr1680 OLIE 09-09 Asia (Eng) Birds Nest R1 AF.indd 1 8/24/09 4:11:35 PM

0

50,000

100,000

150,000

200,000

0%

5%

10%

15%

20%

25%

LCD TV LED Backlight TV Penetration Rate

45,000 113 0.3%

2006

79,000 356 0.5%

2007

101,000 879 0.9%

2008

115,300 3,021 2.6%

2009(E)

135,500 7,182 5.3%

2010(F)

158,300 17,096 10.8%

2011(F)

180,500 39,710 22.0%

2012(F)

Global Outlook of LED Industryby Angel Chiou

Fig1. Global LED Packaging Revenue Forecast by Region Fig2. Global LED TV Penetration Rate Forecast

Courtesy: PIDA Courtesy: PIDA

Chip / Cutting AXT, Cree, Gelcore, UniroyalPackageAgilent

Chip / Cutting Epiplus, Epivalley, RanboPackageNumerous small packagers

Unit: thousand/penetration rate

6 • OPTOLINK International Edition 2009 Q4

INDUSTRY NEWS

0

5,00

1,000

1,500

2,000

2008 2009(E) 2010(F) 2011(F) 2012(F) 2013(F)

Unit:M USD

Global Outlook of LED Industry

Fig3. Global Demand of LED Street Lamp Forecast Fig4. LED General Lighting Market Forecast

Courtesy: PIDA Courtesy: Strategies Unlimited

Chip / Cutting / Package Nichia, Rohm Chip / CuttingToyoda -GoseiPackageCitizen, Kagoshima, Stanley

Chip / Cutting / Package LG, Samsung

Chip / Cutting / Package Lumileds, Osram

Chip AOC, Epistar, Formosa Epitaxy, Genesis Photonics, Huga Optotech, UniLite, ShinEtsu, VPEC, Advanced Epitaxy Technology, LandMark Optoelectronics

Cutting AOC, Epistar, Formosa Epitaxy, Genesis Photonics, Huga Optotech, UniLite, OptoTech, TYNTEK, Highlight LED

Package Harvatek, LiteOn, Everlight, Bright Led, Unity Opto, LedTech, Para Light, Kingbright, Shian Yih, LIGITEK, Oasistek, Rodan, China Semiconductor, Solidlite, Nan Ya Plastics

OPTOLINK International Edition 2009 Q4 • 7

INDUSTRY NEWS

2009 Taiwan LED Industry Overviewby Angel Chiou

LED chip BridgeLux, Cree, Epistar, Formosa Epitaxy, Nichia, Osram, SemiLEDs LED packageEverlight, LiteOn, AOT, Bright, Harvatek, LustrousLED thermal moduleTTIC, CCI, AVC, Neng Tyi, Lustrous, NeoPac Opto, Advanced Thermal Devices, AuguX

LED lamp poleToalux, Everreaday Precision

LED street lamp systemFITI, NeoPac Opto, Bright LED, TTIC, Advanced Thermal Devices, Harvatek, LEOTEK, Delta, TGI, Unity Opto, Neo-Neon, Tatung, Genius, Topco, Anteya, Yeong Li, Alliance Optotek, AuguX, Everlight

The financial crisis brought a global downturn at the very beginning of this year, and as consequence led to a slowdown of market development and a

negative growth of Taiwan LED revenue. However, the strong demand from LED TV revives the industry beyond expectation. Revenue of Taiwan LED industry is expected to reach USD 2,500 million by the end of 2009 with an annual revenue growth rate at 3%. PIDA analysts predict that the LED industry would upturn in 2010 with the revenue hitting new high at over USD 2,800 million and enjoy a positive growth rate at 13%.

In addition, among the application breakdown of Taiwan LED products, mobile tops with 37% share of total revenue, second by electronic devices’ 32%. The proportion of these two applications however slightly shrunk in 2009 on account for the rising revenue in signs/ displays and illumination. The former occupies

over 20% of LED application, presenting a 5% growth in comparison with 2008, while the share of LED illumination increases from 5% in 2008 to 7% in 2009. PIDA’s analysts forecast the LED application in signs/ displays and illumination will continue growing in the following years.

LED Street / Traffic Light Business Booms with Government Policies

In 2009, street light and LED TV are the most popular issues in Taiwan LED industry. Regarding LED street light, the government has collaborated with several industry players to set up three demonstration areas in Taipei city. Later in June, the Cross-straits LED Forum bought the prime opportunity for Taiwan LED player to install about 1.4 million street lamps as the demonstration in 21


INDUSTRY NEWS

Unit: USD Million

LED Revenue Revenue YoY

2006 2007 2008 2009(E) 2010(F) 2011(F)

100%

80%

60%

40%

20%

0%

Signs/DisplaySignalsIllumitaion

MobileAutomotiveElectronic Equipment/Other

4,000

3,500

3,000

2,500

2,000

1,500

1,000

500

02006 2007 2008 2009(E) 2010(F) 2011(F)

20%18%16%14%12%10%8%6%4%2%0%

LED chips Epistar, Formosa Epitaxy, Tekcore, Huga, Optotech, Lextar, Chi Mei Lighting LED packageUnity Opto, Everlight, Harvatek, LiteOn, LHTC, WellypowerLED Lead FrameI-Chiun

major cities in China. Taiwan-based chipmakers are expected to be benefited due to China’s insufficient supply in LED chip. Moreover, Taiwan government also passed Renewable Energy Development Act with a strong focus on solar energy and LED illumination. The government plans to replace 700 thousand traffic lights with LED by 2011, which will bring a strong demand to Taiwan LED players.

LED TV Rush Brings the Strong Demand

On the other hand, LED TVs pass beyond industry players’ expectation to sell 500 thousand units within a hundred days, triggering a battle to launch LED TV among brand name companies including Sony, LG, Sharp, and Toshiba, to vie for the market share. This results in the increasing demand in LEDs and consequently benefits Taiwan chip makers and packagers.

For example, Taiwan’s largest LED chipmaker Epistar has its revenue hit a new high in October at NTD 1.2 billion for five consecutive months, while the other leading LED player Formosa Epitaxy also sees its revenue increase up to NTD 252 million in October, a 171.16% growth in comparison with revenue in October 2008. It is believed that LED TV will have an explosive growth in 2010, and with monitors remain as the main LED applications for the next three years.

LED TV brand names Amstran, BenQ, CMO

Fig1. Taiwan LED Revenue Forecast

Fig2. Taiwan LED Application Breakdown by Revenue

Courtesy: PIDA

Courtesy: PIDA

Courtesy: Samsung


INDUSTRY NEWS

Large-Sized LED Backlighting Taking the Lead by Angel Chiou

With the rising consciousness of environmental protection, green photonic has become one of the hottest issues among industries

recently. LED with its descending price plus eco-friendly features, including energy efficiency, non-mercury, light weight and long lifespan, has an accelerated growth in application markets. Among all, application in LED backlight module is going to take the lead in near future.

Backlight modules according to light source can be divided into CCFL (Cold Cathode Fluorescent Lamp) backlighting and LED backlighting. Figure 1

shows the comparison of CCFL and LED backlight modules. The advantages of LED backlight are high color gamut, high contrast ratio, short response time, light weight, 30~50% power-saving, and slimmer in size. Most important of all, LED illuminated LCDs reduce the Mura effect which happens to CCFL LCDs during downsize manufacturing process and consequently limits CCFL LCDs’ competitiveness in the commercial market. For example, a 32” CCFL backlight module would take 27% of the product cost, 63% of the weight, 93% of the thickness, and 94% of power consumption.

Because LED backlight application in small-sized displays costs less and has a lower optical technology barrier, adding that portable devices feature energy efficiency and light weight, LED backlight has been quite prevailing among small-sized products. On the other hand, the shipment of LED backlight module in large-sized panels (not including netbooks) reaches 79.8 million units with the penetration rate at 18%, a 427% growth comparing with the previous year. Among all, the penetration rate of LED back-lit notebooks leaps from 11% in 2008 to 51% in 2009, becoming the strongest force to raise growth of LED backlight module in large-sized panels. Concerning LCD TV, the penetration rate of the back-lit one grows from 0.5% in 2008 to 2.5% in 2009, while LED-lit monitors might be over 2 million in 2009 with the penetration rate at 1.6% (see figure 2).

Light Source CCFL LED

Price 1.0x 1.3x～2.1x

Power Consumption Fair 30～50% power saving

Color gamut (NTSC) 72～92％ 72～105%

Life time (hours) 50,000 30,000～50,000

Mercury Yes No

Display thicknessNB：11mmMNT：30mmTV：14～50mm

NB：2.3～5mmMNT：18mmTV：5.9～30mm

Weight Heavy Light

Local dimming No Yes

Contrast 104：1 106：1

Response Time 5 ms 4 ms

Motion blur Yes Reduce

Fig.1 The Comparison of Backlight Modules of CCFL and LED

Courtesy: PIDA, 2009/8


INDUSTRY NEWS

100% Penetration Rate of LED NB in 2012

Since Apple successfully launched Macbook, the power-saving and slim-sized features of LED NBs have drawn everyone’s attention. Notebook brand name companies including HP, Acer, Dell, and Asus began launching NB products in 2008 that appeal to light weight, slimness, and energy-efficiency. The penetration rate of LED NB is forecasted to reach 51% by 2009 yearend and to surpass 80% in 2010. In 2012, notebooks equipped with LED backlight module would reach 100% penetration rate in the market (see figure 2).

Edge-lit LED Backlight TV Tops LED Demand in 2010

The hottest product that utilizes LED backlight in 2009 is definitely LED backlight TV. Soon after Samsung launched its first LED backlight TV, brand name companies also jump into the market, targeting the surge sales of LED TVs. Samsung sold over 650 thousand units in the first four months since the product was launched and announced to reach 2 million unit of shipment by the end of 2009. In October 2009, the company unveiled an ultra thin LED backlight panel that is only 3.9mm thin. On the other hand, Samsung’s counterpart LGD showcases at SID 2009 its 5.9mm thin 42” and 47” edge-lit LED backlight TV panels (see figure 3) with 1,080 pixel, viewing angles 178/178, br ig ht ness 450 cd/m2, color gamut of 80% NTSC (National Television System Committee). LG began to ship edge-lit LED backlight panels to LG Electronics in August 2009, expecting to sell 400 thousand units in the second half of 2009.

According to PIDA, LED backlight panels reached 3 million units in 2009 with

penetration rate of fewer than 3%, among which Samsung take about 70% market share. However, the fast growing market is expected to increase the penetration rate up to 19% in 2011, even surpasses that of CCFL backlight panels in 2014 or 2015.

So far edge-lit LED backlighting is the mainstream technology for LED backlight TVs. Samsung pointed that because edge-lit LED projects light from a row of LEDs on the top and bottom of every panel, it uses less power than a direct-lit LED backlight which emits light forward across the display from the front. In addition, LED backlight TVs uses larger numbers of LEDs. Each TV panel utilizes about 200 to 300 sets of 0.3~0.5W LEDchips. In this way, demand of LEDs used in LED backlight TVs would surge up to 11.4 billion in 2010,

Application Item 2006 2007 2008 2009(e) 2010(f) 2011(f)

NB

BLU(M) 78 104 135 145 160.5 181.3

LED BLU(M) 0.9 4.1 14.2 74.0 131.1 178.0

LED BLU(%) 1.1% 3.9% 10.5% 51.1% 81.7% 98.2%

LED Demand(M) 47 207 697 3,331 5,245 6,765

Netbook

BLU(M) 0.0 0.6 14.2 31.5 44.6 58.3

LED BLU(M) 0 0 13 32 45 58

LED BLU(%) 0 60% 95% 100% 100% 100%

NB+Netbook LED Demand(M) 47 214 1,034 172 184 193

MNT

BLU(M) 139 169 181 172 184 193

LED BLU(M) 0.0 0.1 0.4 2.8 9.6 22.4

LED BLU(%) 0.0% 0.0% 0.2% 1.6% 5.2% 11.6%

LED Demand(M) 3 11 86 512 1,722 4,030

TV

BLU(M) 45.8 79.6 101.3 122.6 144.8 165

LED BLU(M) 0.0 0.0 0.5 3.1 13.2 31.8

LED BLU(%) 0.0% 0.1% 0.5% 2.5% 9.1% 19.3%

LED Demand(M) 137 398 571 2,605 10,805 25,476

Fig.2 Penetration Rate of LED in Large-sized Panels

Fig.3 LG showcases its 47” edge-lit LED backlight TV in 2009


Courtesy: LG


INDUSTRY NEWSY NEWS

outnumbering the total demand from notebook and netbooks, as figure 2 shows.

LED-lit Monitors of Zero Price Gap Launch in 2010

LED backlighting to monitors is less appealing since monitors are usually put onto a desk and has less concern for weight and power. Therefore, price becomes the most important issue for LED application in monitors (see figure 4). AUO and LGD both set the goal that their inner shipment of LED back-lit monitors would reach 10% and 15% single month by the end of 2009. In addition, AUO plans to launch at least one zero price gap LED-lit monitor in 2010. This plan would begin with 18.5” and 21.5” monitors and the inner shipment penetration is estimated to reach 10 to 15%. A more aggressive announcement is made by LGD that the company’s

LED-lit monitor would take 40% share of monitor shipment. Overall, the key points for these companies to raise the penetration of LED back-lit monitors are whether they can secure the source of high bright LED ships as well as their capability to cost down. But one thing for sure now is that monitors of zero price gap will be ahead of the expected time with the effort from panel makers.

While LED keeps its technological advance, it also penetrates markets from cell phone to large-s i z e d p r o d u c t s s u c h a s n o t e b o o k , T V a n d monitors . Now, large-sized display backlighting is expected to become the largest LED application market in near future. According to PIDA, LED application in displays will

soar from 1% in 2009 to 23% in 2012(see figure 5), bringing a strong growth in LED market. With the continuing development, it will not be surprising that LED will one day become the major light source in our daily life.

Taiwan’s Top 10 LED Backlight Module ManufacturersCoretronic Coporation Radiant Opto-Electronics Corporation Forhouse Corporation Nano Electro-Optical Technology (Nano-Op) Kenmos Technology Forward Electronics Co., Ltd Chi Lin Technology Co., Ltd Global Lighting Technologies, Inc. K-Bridge Electronics Co., Ltd Precisions (L) Corp

Fig.4 Motivations and Challenges of Different LED Applications

Fig.5 LED Application in 2009 and 2012


Courtesy: SU, PIDA edits

Application Potential Motivation Challenge Driving Company

NB High● Power saving● Light weight● Thin design

● Optical designApple, HP, Dell, Sony, AUO, ASUS, Acer

LCD TV Medium● Power saving● Dynamic BLU

control

● Cost● Reliability● Thermal● LGP yield rate

Samsung, Sony, LG, Sharp

Monitor Low ● Power saving● Cost● Reliability AUO, LGD, Innolux

Mobile Phones 25%Other Mobile 8%Signs 11%Displays 1%

Automotive 11%Signals 1%Lighting 7%Other 12%

Mobile Phones 10%Other Mobile 14%Signs 8%Displays 23%

Automotive 12%Signals 0%Lighting 14%Other 10%

2009 2012


INDUSTRY NEWS

W hile the global economy is still stumbling along, which suppresses IT spending growth for 2010, there is a sign of green

shoots “showing up in the technology economic landscape.” The rising star that people place hope on is not some kind of super killer application, yet it is going to change our lives dramatically as if we were undergoing another industrial revolution. It is light emitting diode (LED for short) that is poised for a great leap.

LEDs are characterized by several advantages over incandescent light sources, including lower power consumption, longer lifetime, better durability

and reliance, and etc. However, there are inevitably adverse conditions such as several-fold more expensive and hotter than traditional light sources. Thanks to technology breakthrough, the problems mentioned above are expected to get solved as soon as in the near future.

Already, LEDs have found success in home appliances, automotive and mobile phones over the past few years. Starting March, a surge of demand for LED-backlit LCD television, or LED TV (term created by Samsung Electronics), swept over the market, giving a key boost to the industry players across the world, from Epistar Corporation and Formosa

Light Bulbs Off, LEDs Onby PIDA


INDUSTRY NEWS

Epitaxy Incorporation, Taiwan-headquartered LED epiwafer and chip makers, Toyoda Gosei and Nichia Corporation, Japan-located manufacturers, to Cree Inc., North Carolina-based producer.

On one hand, the energy crunch, plus climate change and global economic meltdown, shattered the world; it was, on the other hand, a turning point for people to come to understand that it is high time to create a solution for energy saving and the reduction of carbon emissions.

While a common consensus among governments was establishing, actions have been taken one after another since 2007. By proclaiming bans that power-wasting incandescent bulbs will have to be effectively phased out in the near future, soonest 2010, almost all the governments lift their finger to promote the LED industry. The substantial move will change the design invented in the 19th century by renowned engineer Thomas Edison.

In February 2007, Australia was the bellwether who enacted a law to ban most sales of incandescent light bulbs by 2010. The Australian Federal G overnment announced minimum energ y performance standards (MEPS) for lighting products. As of November 2008 incandescent light bulbs

were no longer imported into Australia, and as of November 2009 the retail sale of non-compliant lighting could no longer be sold. The environment minister expected the move to cut the country’s greenhouse gas emissions by 4 million tons by 2012.

In a little while, the federal government of Canada announced to take action to ban the sale of inefficient light bulbs by 2012, a move aimed to reduce energy consumption as well as greenhouse gases by more than six million tons a year. The head of the administration stressed that by acting up to the regulation, the country will likely save homeowners about $60 annually in electricity costs.

Later in 2007, the Democrats introduced an Act of Congress, called The Energy Independence and Security Act of 2007, to the United States House of Representatives during the 110th Congress. This is an Act to drive the United States to greater energy independence and security, to increase the efficiency of products, and to improve the energy performance of the Federal Government. Also, it required several exempt classes of specialty lights, including appliance lamps, colored lamps, and plant lights.

As for Asian countries, Japan government decided to tackle this issue around the same time. The

Light Emitting Diodes (LEDs) Incandescent Light Bulbs

Life Span (hours) 50,000 1,200

CRI 75 100

CCT 2,000~ 8,000 2,700

Efficiency (lm/w) 70~80 10~18

Watts of electricity used 6~8 watts 60 watts

Toxic Mercury No No

RoHS Compliant Yes Yes

Carbon Dioxide Emissions 451 pounds/year 4,500 pounds/ year

Heat Emitted 3.4 btu’s/hour 85 btu’s/hour

Sensitivity to low temperatures None Some

Sensitive to humidity No Some

Fig.1 Incandescent light bulbs will soon be replaced with a greener light source— LEDs.

Courtesy: Design Recycle Inc.; PIDA


INDUSTRY NEWS

Economy, Trade and Industry Minister made public that manufacturers would have to cease production and sales of incandescent bulbs by 2012. Following the government policies, along with the rising public awareness of environmental issues, major LED developers Toshiba Lighting & Technology Corp., Sharp Corp., Panasonic Corp. and NEC Corp jumped into the market to promote the green initiatives.

Taiwan’s Ministry of Economic Affairs launched the “585 Plan” in 2007 in attempt to eliminate the use of low-efficiency incandescent light bulbs within five year, as well as to reduce carbon dioxide emissions by 500,000 metric tons every year. As the incandescent bulbs will be banned from being manufactured and sold, the government expected to see LED products to hit the shelves as of 2012.

Across from Taiwan Strait, over the next 10 years, China, where population has officially passed 1.3 billion citizens, demonstrated its determination to

weed the incandescent bulbs out of the shelves. The government recently claimed to become the third largest market for LED lighting in 2015. The plan is to replace 30% of the outdoor lighting with LED. As the second largest LED manufacturing force in the world, Taiwan players embraced the policy largely because it represented a market of billions that is about to take off.

Finally, Europe’s incandescent light bulb ban began on September 2009. This was one of a series of measures expected to reach the goal of cutting greenhouse gas emissions by 20% by 2020. Under the ban, retail stores are no longer allowed to purchase and sell high wattage incandescent light bulbs, so are shop owners. The European Union hopes to save homeowners up to $50 over the life of the bulb by switching from incandescent light bulbs to more efficient lighting sources..

2009

EUStarting September 1st 2009, the European Union nations have enacted a ban on the sale of 100-watt and frosted incandescent light bulbs.

2009

UK

The UK government announced in 2007 that incandescent bulbs would be phased out by 2011.

2011

Taiwan

The Ministry of Economic Affairs has drafted an energy saving strategy to totally eliminate the use of incandescent lamps and phase in LED light bulbs by 2012.

2012

United StatesThe United States’ phase-out of incandescent light is to begin with the 100-watt bulb in 2012 and end in 2014 with the 40-watt.

2012

AustraliaAustralia enacted a law in February 2007 that will ban most sales of incandescent light bulbs by 2010.

2010

JapanIn Japan, manufacturers would have to cease production and sales of incandescent bulbs by 2012.

2012

CanadaThe federal government of Canada announced in April 2007 a plan to ban the sale of inefficient light bulbs by 2012.

2012

Fig.2 Governments worldwide to phase out incandescent light bulbs.

Courtesy: PIDA

KoreaKorea claim to ban the use of incandescent light bulbs since 2013.

2013

RussiaRussia plans to ban the production and sale of all types of incandescent light bulb from January 1st, 2014.

2014

ChinaChina government claimed to replace 30% of the outdoor lighting with LED, and to become the third largest market for LED lighting in 2015.

2015


INDUSTRY NEWS

by PIDA

Finding a Niche: LED Special Lighting

A revolution in lighting is brewing as new developments in LEDs (light emitting diodes) are begging to replace the Edison bulbs for the home and office

in few years. From stage shows, automobile lamps, traffic signals and your living room, etc, almost all the traditional incandescent bulbs in this period of global warming are seen as wasteful because they use too much electricity and have too short life spans.

According to a recent report from Strategies Unlimited, a market research firm specializing in optoelectronic, photovoltaic, and compound semiconductor material, the LED lighting market will grow at almost 37% over the next few years. And some other studies even suggest that a complete conversion to the lights could decrease carbon dioxide emissions from electric power used for lighting by up to 50% in two decades.

The LED lighting market was once relegated to basketball scoreboards, mobile phone consoles, traffic lights, and colored Christmas lights, but now is reviewed in a broad sense as more and more applications have been put on the market. The market segment is divided into four groups from general lighting, backlight, vehicle lighting and special lighting. The first three groups are intimately known as lighting for room, street, mobile phone, personal computer (PC), TV, exterior front, exterior rear and interior, the last one is paid less attention since it is pretty diversified.

Special Lighting Growing Fast

A special lighting bulb can be a customized design that adds a unique touch of ambiance and decoration; or it can be some specific products for architectural, emergency, spot, medical, low temperature, and etc. Due to the characteristic of low volume but high-


INDUSTRY NEWS


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product-mix operation of the special lighting, the margin has remained relatively as high as up to 60%.

The great profit potential drives the special lighting market to grow fast. According to Industrial Technology Research Institute (ITRI), a non-profit research institute devoted to research and development closely relevant to the industries and makes great efforts to improve domestic industrial technologies, the global LED general lighting market may grow to more than US $1.6 billion by 2010. By then, the general lighting takes more than half with a slow and steady growth trend whereas the special lighting is expected to account for approximately 10% from 3% sharply. Below is a close-up look at the special market by breaking down applications.

Eye-catching, Energy-saving, and Durability

Channel letter/Contour, a new, cost effective

interior and exterior lighting system based on LED technology to highlight signage in a similar way to traditional trough lighting. The durable, long-life product takes up a market share of 14%, or US $46 million, in 2007, and is forecasted to reach US $100 million in three years.

Replacement lamps, a l ighting product designed to replace traditional lighting sources in TV, projector and digital light processing (DLP) applications that can save energy over 30%. Given that the price of replacement lamps is still much more expensive than the incandescent bulbs, it is not acceptable in the market at this moment.

Wal-mart LED Freezers Bringing the Boom

Retail display, a lighting source applied most in retail center to show off the jewelry, dress and personal adornment and even foods and beverages.


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Starting 2006, retail display was reckoned to provide a better solution in the market on the strength of distinguishing features such as longer life span, and being customized to provide several distributions of light across freezer shelves.

However, the market was not placed much importance until giant Wal-mart took the initiative in 2006 to decorate its 500-ish branches in the U.S.. According to reports, Wal-Mart poured US $13 million into a project to replace lighting sources in its freezers, a move that was expected to save cost up to US $2.6 million. With the tangible benefit emerging from the investment, more and more nation-wide shoppers followed the example of Wal-mart to implement a similar program. Studies show that the retail display market will soar to US $190 million in 2010 from a low value at US $19 million in 2007, plus a compound annual growth rate (CAGR) of 59% from 2007 to 2012.

Outdoor Area Lighting Expected to Grow Fast

Outdoor area lighting, an improved outdoor

lighting system that comprises a light assembly formed from at least one tubular mast having a distal end for supporting an electrically powered light source, and a proximal end mounted in the ground, and an electrical cable for connecting the light source to an underground power source. The market scale was merely US $800,000 in 2007 for the limitation of law. But with the technology advancing as well as the price sliding, it is projected to grow fast to reach US $41 million in 2012, with a CAGR of 120% during the five years.

Machine vision and security lighting both find niches in automated inspection and emergency instruction. Machine-vision systems, where images must be captured rapidly, allow users to look over different shapes and appearances. The demand will likely to increase slightly to hit US $26 million in 2012. Security lighting mostly goes to the security service firms where the market is getting crowded, so the growth is not as exciting as the other application markets. As of 2012, the market will likely reach US $18 million.

Courtesy: Ledtech, Media Advantage, Medill Reports from Northwestern University


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Dr. Charles K. Kao widely regarded as the "Father of Fiber Optics" was awarded half of the 2009 Nobel Prize in Physics for "groundbreaking achievements

concerning the transmission of light in fibers for optical communication". This late honor recognized his achievements in the fiber communication, which is definitely a critical factor to the progress of the human society.

Kao first proposed that glass fiber could be used for long-distance information transfer and replace copper wires which were used for telecommunication during that time, although his idea was not well received at first; later people realized that Kao's idea has brought critical changes to the whole

communication technology and industry.In early 1960s, when it was widely perceived that

glass fiber is not applicable in the communication field, Kao managed to prove fiber’s workability by demonstrating that the high-loss of fiber optics arose from impurities in the glass, rather than from an underlying problem with the technology itself. Kao not only considered the optical physics but also the material properties. The results were first presented by Kao In January 1966 in London, Kao first present his result, and further published it in July in which the use of glass fibers to implement optical communication is firstly proposed, the ideas described laid the foundation for today's optical fiber communications.

Charles K. Kao –The Father of Fiber Opticsby PIDA

Fig.1 Dr. Charles K. Kao was awarded Japan Prize in 1997 Fig.2 Dr. Charles K. Kao congratulated former Executive Yuan Minister Sun during a cel-ebration party

Courtesy:PIDA

Courtesy:PIDA


INDUSTRY NEWS

Kao was born in Shanghai and obtained his Bachelor of Science degree issued by the University of London. He then pursued research and received his PhD degree in electrical engineering in 1965 from University College London while working at Standard Telecommunication Laboratories (STL) in England. Kao joined the Chinese University of Hong Kong (CUHK) in 1970. Later, Kao was the keynote speaker at IEEE GLOBECOM 2002 in Taipei, Taiwan. In 2003 Kao was named a Chair Professor at the Electrical Engineering department of National Taiwan University.

Dr. Peter Shih, the founder and also the chairman of PIDA, has invited Kao to visit Taiwan several times and to give his professional advices to the Taiwan academia and industry. During one of his speeches, Kao encouraged Taiwan photonics industry to move forward with fiber optics.

“Years have passed since the introduction of first fiber network in Massachusetts, where multimode fibers with a core diameter of 50μm are used for transmitting only a limited amount of data. As for now, the advances of laser & fiber technologies have enabled the possibility of transmitting almost unlimited amount of data in one single mode fiber, even multiple wavelength can be transmitted in one

fiber at the same time. In the end we’re looking at single fibers having a 1 Terrabits (1,000 Gbps), taking the communication technology to next level.

We are marching into a new era, I personally expect Dr. Peter Shih can come up with new plans for the industry and guide us through the implementing process, such as telling us what technology is for real, the latest technology updates and the realization of emerging technologies, so that we can look to new technologies and use them for the good of mankind.

What I’d like to stress is that we’re now in a very different world. We need to try to learn faster and know how to continue our study to embrace the brave new world laid by fibers,” said Kao.

There’s a verse best describing Kao as we’re praising his contribution to the optical fiber industry:

Optical fiber founded by Kao,Ever suspect to give man the power,

Use the fiber talk & see,Hear the sub, deep in the sea.

Fig.3 Dr. Charles K. Kao met with Dr. Peter Shih to exchange ideas on the Taiwan photonics industryCourtesy: PIDA


INDUSTRY NEWS

Focusing on economic development and sustainable business operation for both people and the environment, the Southern Taiwan Science Park (STSP)

Administration has put full effort in promoting the green energy and medical device industry clusters and has achieved remarkable results. The green energy industry comprises energy saving (LED) and energy generating (Photovoltaic) industry. According to the statistics of Photonics Industry & Technology

Development Association, the combined production value of LED & photovoltaic industry in Taiwan is around 4.1 billion US dollars, occupying 14% of the global production value; wherein the production value of Taiwan’s LED industry is only second to that of Japanese LED industry, while the production value of Taiwan photovoltaic is no.4 worldwide. As to the total production value of Taiwan, the STSP contributes 42.2 billion NT dollars, which is 40% of the total production value of Taiwan. There’s no doubt

STSP Aiming for Sustainable Industry Development in Taiwanby PIDA

Fig.1 Director-general Chen

said there’s no time to waste on the development

of STSP

Courtesy: STSP


INDUSTRY NEWS

that STSP has become a prominent manufacturing base in the Southern Taiwan region.

Chun-Wei Chen, the Director-general of the STSP Administration has a clear picture in his mind, he vowed to lead the STSP to fulfill the vision of “industry cluster”, “sustainable development”, and “living environment integrated with art and culture”. Chen noted that the plan of STSP is to seek a balance between the development of industry clusters and the conservation of ecological environment to build a “green” science park.

Building Comprehensive Industry Clusters

The Tainan Science Park of STSP comprises leading IC foundries TSMC and UMC, and vertically integrated LCD supply chain headed by Chi Mei Optoelectronics and Hannstar. Furthermore, the green energy industry in STSP is now taking up more than 1/3 of the total production value of Taiwan’s green energy sector. While in Kaohsiung Science Park (KSP), bio-medical device, precision machinery, and telecommunication sectors have been established with complete supply chains.

The green energy industry has been actively developing in STSP. The green energy sector in STSP consists of two major aspects: photovoltaic and LED industries. In the regard of photovoltaic industry, tenant enterprises include Taiwan Polysilicon (silicon wafer material), MJC PROBE (solar cell ingot

sawing), MOTECH (solar cell & electricity generating system), Gloria Solar, Tai-photovoltaic (solar cell modules), NANO-WIN TECH (thin-film solar cell), and Delta (power converter for regenerated energy); there are also those including EPISTAR, Formosa Epitaxy, Genesis Photonics, EPILEDs in the LED industry. In the future, STSP is going to attract more tenant enterprises to establish a vertically integrated industry supply chain, thereby creating the biggest green energy cluster in Taiwan.

C h e n a l s o s a i d t h at t h e S T SP Administration also stresses on the development of the bio-medical device

clusters to balance the regional development of the KSP and its surrounding towns & cities. Chen noted that KSP is situated between Lujhu, Gangshan and Yongan Townships of Kaohsiung County with a total area of 1,409 acres. There are many traditional machinery/processing companies in this region. Therefore, the plan is to help these traditional machinery/processing companies upgrade their techniques and bring added values to their products. During this process, a lot of research institutes and hospitals such as National Cheng Kung University, Kao Yuan University, Southern Taiwan University, National University of Kaohsiung, I-Shou University, Kaohsiung Medical University, Kaohsiung Branch of Chang Gung Memorial Hospital, Kaohsiung Veterans General Hospital, and Chi Mei Medical Center cooperate with the STSP Administration to develop new medical techniques and equipment and to transfer technologies to local companies. With the help from these research institutes and hospitals, Chen believes KSP stands a chance of becoming the most important medical device cluster in Taiwan.

Upgrading Traditional Industry

For example, Anchor Fasteners Industrial Co., Ltd. as stated by Chen, is a so-called traditional manufacturer which produces anchors, fasteners, and mobile parts. In 2008, the company applied to be a tenant enterprise in the KSP to develop dental implants and fasteners for orthopedics. The company

Fig.2 The welcome landmark of STSP

Courtesy: STSP


INDUSTRY NEWS

also works with Taipei Medical University to jointly work on new medical device. Anchor shows that even a common fastener (screw) could turn into something worth a lot more with the right R&D efforts. That is exactly what the STSP Administration wants to create for the neighboring industry clusters.

As for now, companies such as ComMed Technologies CO. LTD Kaohsiung Branch, Eped Inc., Codent Tech., Fiberpure Technology Co., Ltd., Hung Chun Tech Co., Ltd, LightMed Corporation, BLUE-OCEAN Co., Ltd., BIOMATE MEDICAL DEVICES TECHNOLOGY CO., LTD., Life Fusion LLC, Huang Liang Biomedical Technology Co., Ltd., Kera Harvest Inc., Kaohsiung Medical University and Taipei Medical University have been granted in the KSP, while notable companies and research institutes such as Aurora, National Yang-Ming University, and Taipei Medical University all express the willingness to become tenant enterprises in the KSP. In the future, the bio-medical device industry will be key industries in the STSP.

To supp or t t he s e i ndust r i e s , t he ST SP Administration also promotes the “service cluster” concept, such as establishing a sterilization and medical device verification center to facilitate the development of the medical device industry. The service cluster comprises banking and financial services, food services, consumer commodity services, venture capitals, accounting & law services, along with travel agencies and equipment maintenance companies. With these services to support the core industries in the STSP, tenant enterprises have every service available to run their operations.

Promoting Sustainable Development

Furthermore, sustainable development should be taken into consideration in drafting the plan for the STSP. Therefore, the implementation scope covers four aspects: “Green Industry”, “Environmental Protection”, “Ecological Landscape” and “Green Building”. Key areas of work include the following: 1. Green Industry: developing the green energy cluster and the electric car cluster; 2. Environmental Protection: including waste reduction and disposal, sewage management and disposal, pollutant volume control, toxin management, clean production,

and environmental communication; 3. Ecological Landscape: covering light pollution prevention, green transportation, detention pond, cultural relics, and ecological reservation area; 4. green building: involving site planning, architecture administration, green energy, green building certificate, promotion, and renewal of existing architecture.

In addition, the STSP promotes the green building plan to implement green buildings with a public facility rate of 45%, a building coverage rate of 50%, and a floor area ratio of 200%. Besides, the STSP Administration introduces the use of green energy, certifies green buildings, compiles green building map and implements green science park certification and promotes related activities for the long term development of green industries.

Living Environment Integrated with Art and Culture

Many historical remains have been found in STSP, as for now, there are twenty five archaeological sites and fifteen of them are being excavated. According to dating data, the oldest archaeological site presently found can be dated back to 4,800 years ago, and the most recent one is about 200 years ago. These pre-historical culture and art are the most valuable and distinguished feature of STSP while compared with other science parks.

Additionally, in order to establish a sustainable environment and to give people new impressions of STSP, the STSP Administration tries to combine public art with public buildings and constructions, for example, the design and the construction of the 4th 3,000-ton elevated water tank separates the water tank from the reservoir, and both designs balance negative space with the visual effect produced by the multi-directional footbridge. This land bridge connects the green parks for pedestrians and bikers. The landmark visually represents water and health, as in “Yuanbao”. Furthermore, the most notable change is the landmark at the front gate of STSP, which will become one of the most prominent symbols of STSP.

Current Achievement & Future Aspects

STSP leads the domestic industrial parks in


INDUSTRY NEWS

building green buildings, introducing green energy industry, promoting ecological landscape and environmental protection. As for now, the tenant company TSMC’s Fab 14 has won a LEED NC (new construction) “gold class ” certificate from U.S Green Building Council (USGBC) in 2008, which is the first building ever to acquire the certification from USGBC in Taiwan. Delta Electronics, Inc.- which set up the first “Green Factory” in Taiwan to be awarded Gold-class certification. Furthermore, the Green Water Tree Valley Recreation Center built by Chi Mei Optoelectronics (CMO) for its employees is awarded Taiwan’s top green building honor- Taiwan EEWH Diamond-Class Certification by the Ministry of the Interior, symbolizing the aggressive development of green buildings in STSP.

Chen pointed out a few measures to be carried out in the future, which are: 1. Promote co-existence and mutual benefits for the site environment. 2. Promote the introduction of green energy industries, green buildings and energy-efficient green transportation. Improve energy consumption efficiency in the park.

Reduce greenhouse gas emission. 3. Create secure and sustainable Green Park. 4. Promote the awareness and exchange of domestic and foreign sustainable architecture evaluation systems. 5. Devise green building renewal evaluation and reformation plan for existing public facilities on-site. 6. Promote the enhancement of indoor environment quality and establish green building material usage in the park. Create comfortable and healthy living spaces.

F o r e x a m p l e , t h e Institute of Nuclear Energy Research (INER), Atomic Energy Council, is going to establish the HCPV ( H i g h C o n c e nt r a t i o n

Photovoltaic) Qualification & Development Center at Kaohsiung Science Park with the construction of HCPV power generation module certification system in compliance with international regulations. The STSP Administration will work with INER to utilize technology transfer and collaboration plan to exploit industry talent and attract venture capital. This will promote the development of solar energy systems in southern Taiwan, and aid in the creation and sustainability of a comprehensive value chain.

Conclusion

STSP creates a borderless environment for the tenant enterprises and its neighboring cities and towns. One can only tell the difference when the landmark of STSP is in sight and is thus given a new impression about the science park. As stated by Chen, the vision of STSP is to set for the goals of “industry clusters”, “sustainable development”, and “living environment integrated with art and culture” as benchmarks for other science parks in Taiwan.

Fig.3 Public Art has given new life to STSP (The 4th elevated water tank and distribu-tion reservoir visually represents water and health, as in “Yuanbao.”)

Courtesy: STSP


INDUSTRY NEWS

Ta i w a n , being the most powerful LED m a n u f a c t u r i n g engine in the world, is well known for its integrated and comprehensive LED industry supply chain. In order to reflect the trend and the bright performance of Taiwan’s LED industry, LED Lighting Taiwan 2010, scheduled to held from June 9th to 11th 2010, not only brings you the most updated developments and features of Taiwan’s LED industry, but also it will show you the synergy between loca l and g lobal LED manufacturers, and how this synergy

Ac c o r d i n g t o P I D A’s statistics, benefited by strong global demands and government policies,

the total revenue of Taiwan LED industry (epi, wafer, and packaging) reached 2,733 million USD in 2009 with a 19% growth. It is expected the trend will continue in 2010, with 2010 LED chip production value of Taiwan LED industry breaking 1,068 million USD and packaging production value rising to 1,665 million USD. In comparison, the 2010 global LED chip market value will reach 3,200M USD; while packaging market value is likely to climb to 8,230M USD.

by PIDA

c a n h e l p y o u c r e a t e

your business opportunities.T h i s y e a r , t h e

s h o w o r g a n i z e r P I D A has launched a global marketing initiative to boost the visibility of this exposition. PIDA is going to arrange official visiting activities, such as cooperating with Science Parks, meeting with international delegates from Germany, UK and Republic of Ireland , and organizations such OITDA, JLEDS to enhance the cooperation between local and global LED industry. PIDA also cooperates

LED Lighting Taiwan 2010 :

A Greener Taiwan

28 • OPTOLINK International Edition 2009 Q428 • OPTOLINK International Edition 2009 Q3

EXHIBITION WATCH

such as the Opening Ceremony, Outstanding Photonics Product Award, Welcome Reception Party, Exhibitors’ Seminar, and Business match meeting to help promote this annual event. In 2009, LED leaders include Nichia, Cree, Dow Corning, Panasonic, Seoul Semiconductor, Optotech, Everlight, Genius Electronic Optical, LiteOn had attended this photonic event and made this event a success. Don’t miss the chance to meet the top tier providers in LED Lighting Taiwan again this year.

with overseas Taiwan trade offices/foreign trade offices to market the green image of LED Lighting Taiwan. Besides, international presses such as Dempa News, JEI, Electronics J o u r n a l , L a s e r F o c u s Wo r l d from Japan, LEDs MAGAZINE, Optronics, Architectural SSL, LED PROFESSIONAL, Nature Photonic, Photonics Spectra, Opto Laser Europe form Europe/US will help to give more exposure to the show.

Apart from the exhibition itself, PIDA also presents special events

LED Lighting Taiwan 2010, with the strong commitment and support both from local & world-class LED manufacturers, promises to help boost the industry vitality as well as to stimulate the business in the FPD field. We believe with the passion and efforts from all participants in the show, LED Lighting Taiwan 2010 would create win-win opportunities for everyone and bring the LED industry an amazing success.

Fig.1 2009 Show Result

Courtesy: PIDA

Fig.2 Taiwan’s Policies to Go “GREEN”

Courtesy: The Executive Yuan, Taiwan

. .

OPTOLINK International Edition 2009 Q4 • 29OPTOLINK International Edition 2009 Q3 • 29

EXHIBITION WATCH

LEDs in Prosperity

Special Report on LED Japan Conference &

Expo 2009

Therefore, Japan has been actively involved in alternative energy and environmental protection issues among Asian countries. Dec.1997, Kyoto Protocol was signed in COP3 by 38 countries and EU in order to reduce the green house impact toward the global environment. Among others, Japan expects to reduce its amount of green house gas to that of 1990 minus 52% during 2008 to 2012. To reach this

The 2-day-run LED Japan Conference & Expo was held during September 16th to 17th, co-organized

by ICS Convention Design and PennWell. The venue of the exhibition moved to Pacifico Yokohama Hall from Tokyo this year for an expanding scale of the show.

As an i s l and t yp e count r y, Japan is relatively limited for the natura l resources such as gas .

by Angel Chiou

goal, Japanese government has been promoting policies, products and industry related to green energy, one of which is LED lighting

LED Aims to Substitute for Incandescent Light Bulbs

From the products exhibited in the show, it seems that government’s policy to phase out incandescent light bulbs is taken as a great opportunity


EXHIBITION WATCH

Fig.2 Rooster Lighting’s Solar Block is a LED product with 2.5 W solar cells

Fig.1 Toshiba launched series of LED light bulbs that only cost JPY 5,250

Courtesy: Rooster Lighting; PIDA

Courtesy: PIDA

83 lm/W and 6.9W LED light bulb with efficiency of 82 lm/W, as figure 1 shows.

LED plus PV

In addition to conventional LED products, some companies exhibited LED products that combine with solar cells. Taiwan-based manufacturer Rooster Lighting launched “Solar Block,” which won 2009 International Design Excellence Award Bronze in Environment Category issued by Industrial Designers Society of America (IDSA). The product

for LED players to cut into the lighting market. Various LED lighting products aim to replace the current incandescent light bulbs.

Digital Light specified that the conventional 60W incandescent light bulbs can be replaced by the company’s 6W LED products, which have already passed tests from US Department of Energy (DOE). The other leading company Toshiba showed it LED light bulbs that only cost JPY 5,250 yet with a color rendering index of 70 at least. The series of products include 4.1W LED light bulb with efficiency up to

i s charge d by s o l ar energy and is used in performing purpose, warning sign, guidance and decoration (figure 2).

AXIA on the other hand exhibited a model of a conceptual product that combines LED plant lighting and solar roof, as figure 3 shows. This product utilizes thin film solar panel as a top, through which turns sunlight into electronic for plant growth LED. The product is not commercialized

Dimension 200×200×45mm

Weight 1.8kg

Protection level IP 68

Solar cell 2.5W Mono-Crystalline silicon

Battery LiFePO4

Charge time 2HR

Working hours 8HR

Working temperature -20˚C~ 60˚C

Diffuser Polycarbonate

OPTOLINK International Edition 2009 Q4 • 31OPTOLINK International Edition 2009 Q3 • 31

EXHIBITION WATCH

Fig.3 AXIA showcased the model product that combines LED plant lighting and solar roof

Fig.4 Sakurai Corporation’s Sound Cross is audio-controlled

Fig.5 The webcam is equipped with yellow LED featuring the whitening effect

Courtesy: PIDA Courtesy: PIDA Courtesy: PIDA

storages. The other LED product LD-C72CH features waterproof and salt-durable, aiming the niche market of LED used in fish luring.

AXIX launched a special LED product that combines mirror and painting. This special product contains LED light source, sensors and mirror, looking just like a regular decoration of painting. But when people step closer to the product, the sensor would soon turn the painting into a mirror.

One of the surprises in LED Japan 2009 is the theme of “Magical Light World,” which features special function of LED products of different spectrum. For example, blue LED can be used to put people at ease through stimulate parasympathetic nervous system. Blue LED is developed to improve people’s sleeping condition. Yellow LED of certain wavelength would be

yet, but AXIA is confident with their product since both LED and solar energy are highly potential in green energy industry.

LED Niche Market Diversifies

In the 2-day show, LED products that targets niche market definitely play an important part in LED Japan Conference & Expo. Sound Cross (as shown in figure 4), launched by Sakurai Corporation, is an audio-controlled LED product. This product enables change of lighting effect and in consequence atmosphere through voice, and aims applications such as decoration and indicator lighting in entrance or hallways.

T he Kore a - b a s e d c omp any FAWOO Technology exhibited its LED products for industry applications such as LED ceiling light in factories or

helpful to whitening and improve healing conditions of allergy to pollen. Figure 5 shows a webcam that features whitening effect through yellow LED. In addition, red LED is taken as a medical treatment to stimulate natural collagen growth, and therefore improve skin tone and clarity.

Overall, the continue improvement in light efficiency and reduction of cost make LED more competitive to enter the traditional lighting market with an ambition to replace current incandescent light bulbs. Apart from the lighting market, LED manufacturers also put effort in developing products that aim the prosperous niche market. Although LED Japan Conference & Expo 2009 is not a large-scaled exhibition, its innovative designs of all kinds show a great potential of LED in future applications.


EXHIBITION WATCH

LED

P33_Lite-On: Lit Up the World

P35_Everlight Prepares for the Future with LED Lighting

P37_Epistar Expands to Secure its Edge in LED Industry

P40_Harvatek Sailing to Success

P42_Unity Opto: Always Looking Ahead

P45_Seoul Semiconductor— Leader of AC LED

Lite-On: Lit Up the World

outstanding achievement in LED industry.

Wide range of diversification

Lite-On comprises several subsidiary companies that cover a complete series of LED illuminating products of different market. Regarding LED traffic and transit product, Lite-On group enjoys a 50% market share in South America, and an over 30% market share in the United States, shipping about 500 thousand LED traffic and transit modules every year. The group is also the major qualified supplier of street lights to Los Angeles with 140 thousand units sold within 5 years, and is ambitious to pursuit the business of installation of LED street lamps in

This fall, an exhibition named Starry Starry Night opened. Thousands of guidance volunteers, minority groups, dropout youths, and disabled people were invited

to attend this show and to experience the power of art. Behind this charity event worked a bunch of artists and enterprises, one of which is Lite-On.

If one looks back how much Lite-On had devoted into cultural and charity events, it can be found Lite-On is quite a unique LED manufacturer. For example, the company has won Corporate Social Responsibility Award for the past 5 consecutive years. What is the power that supports Lite-On’s participation in cultural and charity events? The answer is the company’s

by Angel Chiou

COMPANY PROFILE

Fig.1 Dr. Wu stresses on the importance of standard establishment in future LED development.

Courtesy: PIDA


COMPANY PROFILE

other hand, LED standards would help consumers understand the advantages of LED products. “We LED players should avoid making the same mistake of compact fluorescent light (CFL) bulbs introduction,” said Dr. Wu.

In addition to LED standards, Dr. Wu also shares his thoughts on China market. The LED industry in China is taking off through the big promotion from the government. However, chip companies are much outnumbered by package companies. Regarding the unbalance of chip and package players, Dr. Wu remains optimistic. “For LED chips, efficiency matters,” he said. To improve efficiency, resources need to be gathered up. Thus the phenomenon of limited numbers of LED chip companies actually follows the developing trend of LED industry. Package, nevertheless, is a different story. LED has a wide range of application, each of which has its way of package to reach best lighting efficiency. In other words, package companies are more diverse than chip manufacturers. “As long as the package company finds its position in the supply chain, it survives.” Facing more and more companies come to make LEDs, Dr. Wu takes it as a good sign— “it means the industry is on the rise.”

LED industry is indeed growing, especially for Lite-On. According to the internal estimation, the Group’s revenue of LED lighting products would reach 4 billions NTD by the end of 2009. Being optimistic toward LED industry, Lite-On expects to enjoy double growth in the coming year.

China’s ten major cities. Additionally, Lite-On also involves automotive LED lighting, in-/out-door light, backlight and so on. Comparing with other LED players, Lite-On is quite successful in expanding a wide range of products in LED industry. As being well-developed horizontally, Lite-On is more prudent with its vertical integration plan. “Cooperation among chips, package, and application is a must,” said Dr. Rex H. J. Wu, general manager of Lite-On’s Advanced Lighting Solution SBU, “but to choose the right partner is important.”

LED standards prioritize

The thing perhaps worth much more attention from every LED player, according to Dr. Wu, is to build a better competitive environment for the industry. By “better competitive environment” he means the establishment of LED standards. “Many companies claim their products have high efficiency,” said Dr. Wu, “but efficiency is not determined only by lumen per watt.” Factors that also influence illumination such as color temperature and color rendering should also be taken into account. This lack of consensus on LED standards blocks the progress of LED industry. He believes LED products would eventually become a choice of consumers, and therefore the efficiency has to be good enough to convince consumers to replace conventional light sources with LEDs. On one hand, the establishment of LED standards would benefit LED players by providing a product model for them to follow. On the

Fig.2 Webcam Light from Lite-On Fig.3 Lite-On’s LED Decoration Notebook Courtesy: Lite-On Courtesy: Lite-On


COMPANY PROFILE

to bridge the gap between high bright, low power and high lumens, high power LEDs, providing significant milli-candela output per amount of power consumed.

PIDA pointed out the other major development that is prevailing. In the LCD-TV market, though the penetration rate for LED backlight in 2009 is 2%, the penetration rate is expected to soar to 42% in 2012. Besides, by 2012, LED backlight is literally in every NB, compared with only 51% of penetration rate in 2009, this is due to the edge-mounted LED-backlight systems enabling thinner sets that will be more attractive to consumers.

“The price declines for LEDs allow LED-backlit sets to become more price-competitive, and so many new applications are coming up,” said Mr. Kammerer. From TV which is taken as the main power to drive the market demand, to notebook which is regarded as a huge potential market, LEDs are proved to be good choices to “green” minded consumers.

PIDA mentioned in the report that as the semiconductor market is going through the financial

Everlight Prepares for the Future with LED Lighting

“The two major goals we are focusing on are backlight and general lighting markets, from TV, notebook to street lighting

and automotive,” said Bernd Kammerer, General Manager of Sales and Marketing Business Group of Everlight Electronics Co, Ltd., a leader in Taiwan’s light-emitting diodes (LEDs) packaging industry, in an interview with Photonics Industry & Technology Development Association (PIDA) in November, 2009.

According to report about the LED replacement lamp market released by PIDA, the market will grow rapidly in the near future because of vastly improved technology and quality, as well as much lower costs that make the replacement of incandescent bulbs more affordable.

In the report, the replacement market will be taking off soon because of legislation banned inefficient lamps, plus customer awareness of energy saving and carbon reduction. The trend is now creating a strong demand for replacement LED lamps starting 2009.

Market conditions are also right for the LED replacement lamp market to accelerate in the next few years as the overall performance of LED lamp is improving and becoming brighter and more efficient. Although the market for LED replacement lamps is still in its early stages of development, lamp revenues are forecasted to grow at a CAGR of about 200% through 2012 to reach 10.8 billion US dollars, according to the report.

Foreseeing the wave, Mr. Kammerer said Everlight has been under development for lamp series that are specially designed for applications which require High Power - High Bright LED products for years. Everlight delivers a broad range of products from 1 watt and 3 watt for high-end applications to 0.5 watt Series for mid-watt applications. The company hopes

by PIDA

COMPANY PROFILE

Fig.1 Bernd Kammer-er, General Manager of Sales and Market-ing Business Group of Everlight Electronics Co, Ltd., believes new LED applications are coming up.

Courtesy: Everlight


COMPANY PROFILE

accumulated revenues from January to November totaled NT$10.16 billion, down 2.47% on year, and expects December revenues to continuously drop slightly sequentially due to annual stock take. However, Everlight’s fourth-quarter revenues will remain flat compared to the third quarter.

Positive performances urged some investment banks to upgrade Everlight a while ago given an LED chip shortage in 2010, which prompts Everlight to keep planning to expand its capacity. According to the company’s executive, its monthly capacity will grow more than 30% by the end of the second quarter of 2010. Mr. Kammerer said the company earned trust from the investors mostly because it insists in its promise of high quality and time-to-market principle.

The aggressive moves pulled China in an interest of a partnership in LED market, according to a local Chinese newspaper. In the story, Everlight, along with the other players from upstream to downstream, were named to be candidates for The China Electronic Chamber of Commerce to approach. The story further said the organization is seeking to invest in Taiwan’s factories because the manufacturing capability is strong to meet the technology standards.

downturn, LEDs are expected to outshine it, with 2.9% revenue growth estimated for 2010. While the number of 2.9% seems a decent rise compared to the average, the revenue growth is still a remarkable accomplishment, especially sense the LED industry was falling into a difficult time when the financial crisis swept across the world.

Driven by the demand for LED-backlit LCD TV and notebook, Everlight has reported revenues of NT$1.11 billion for November, up 34.25% from NT$824.35 million for November 2008. Everlight’s

Fig.2 Bitan Drawbridge showcases many of Everlight’s LED lighting

technologies.

Courtesy: Everlight

Fig.3 Various LED products from Everlight.

Courtesy: Everlight


COMPANY PROFILE

and is expected to continue growing for the next five years. It forecasts the penetration rate of LED backlights for large displays (including LCD TVs)

Epistar Expands to Secure its Edge in LED Industry

“Explosive demand for LED TVs, notebook computers, monitors and general lighting is likely to make light-emitting diodes

(LEDs) in short supply, and we will seize the chance to grow in strength,” said Dr. M. J. Jou, President of Epistar Corp, the world’s largest supplier in terms of production volume of red LEDs, in an interview with Photonics Industry & Technology Development Association (PIDA) in late November, 2009.

Preparing for Fast-growing Demands

Soon after, on December 3, Epistar announced that it acquired a 50% shareholding in Nan Ya Photonics Inc, a specialist in high brightness LED wafers and chips, for around NT$1 billion, a strategic alliance aimed to share resources, enhance operational efficiency and boost shareholders’ interests.

Moreover, the partnership is expected to help both companies to increase production capacity and reduce costs through joint efforts in research and development Epistar’s executive said by sending its specialists to help Nanya fine-tune its production of blue chips to ramp up the yield rate, both companies expect to fully utilize Nanya’s production capacity in support of Epistar in 2010.

Epistar’s move echoed to the current awkward situation that the supply is unable to meet the demand driven abruptly in early 2009 by LED-backlit LCD TVs. Dr. Jou cited PIDA’ statistics, saying that the sales growth of LEDs for 2010 and beyond will be spurred by increasing penetration into backlight for TV, NB and monitor as well as lighting applications.

According to PIDA’s survey, the LED backlight market has rapidly emerged in the TFT LCD industry

by PIDA

COMPANY PROFILE

Fig.1 Dr, Jou said the key to Epistar’s success is to expand its customer base to capture the market growth



COMPANY PROFILE

is to grow from about 3% in 2009 to more than 30% in 2011 and should surpass CCFL backlights in five years with more than 50% penetration rate.

The LED TV Boom

LED TV has brought the industry that was once in a critical situation back to a bellwether in the economic downturn. “As far as we can see, the penetration of LED-backlit TV will be ranging from 15% to 20% in 2010 , and every end-product vendors are preparing to make a move at the moment,” said Dr. Jou.

Truly, the demand for LED that fueled by LED TV will boost the market growth through 2010. According to Samsung, it is about to carry out the goal of selling at least 2 million LCD televisions that use LED in 2009. And, even though vigorous consumer electronics opponents such as Samsung’s home rival LG Electronics, Japan-based Sony Corp., Panasonic Corporation and Sharp Electronics Corporation, and America's number one LCD HDTV Company VIZIO have launched fancier products to steal customers away from Samsung, an executive of Samsung vows to sell at least 10 million units in 2010.

Dr. Jou said the company’s capacity will probably be tightly occupied throughout 2010, and won’t ease off in the near future due to a short supply of metal-organic chemical vapor deposition (MOCVD) reactor that hampers LED supply.

There are only two major suppliers for MOCVD equipment for the LED chip manufacturing industry

across the world. In the fourth quarter of 2008, the two key manufacturers cut forces up to 10% as the financial crisis deepened, so when the boom in LED market took off in one season after, it put heavy pressure on these two suppliers.

Alliance with Tekcore

To secure its edge in the industry, Epistar made a quick decision to invest US$22.45 million in purchasing a 19.9% stake of smaller rival Tekcore Co through a private placement deal on October 6. Epistar hoped the alliance will strengthen and support both companies when the industry is continuing to experience LED chip shortage, which is likely to continue through next year.

However, Dr. Jou admitted the decision was made because there is a deeper concern over the industry’s dynamics that might dramatically change within the next few years. Allegedly Samsung has placed a big order of more than one hundred MOCVDs to the two key vendors since March. Somewhat that buzz indicates Samsung is planning to build up its own technology and capacity in just a few years.

Dr. Jou said Samsung’s bold move is not surprising because it has always pursued a policy of keeping at least 50% from internal supply while the rest by outsourcing. “We know that we have to expand our customer base as much as we can in order to capture the market growth and not reply on one single customer,” said Mr. Jou.

Fig.2 Large Area LED Backlight Unit Penetration Rate by Application

Source: PIDA, 2009/8


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Harvatek Sailing to Success

“To enter the LED industry was totally a coincidence,” laughed by Bily Wang, Chairperson of Harvatek Corporation, who

once wanted to be— a captain!

A Life-changing Decision

Dr. Wang was a shipping technology major in college, and was a qualified second mate for piloting liners over 100,000 tons. He has been to Europe,

Africa, Suez Canal, and Panama Canal, even Iraq. What made him enter the LED industry? The answer is a part-time between his two voyages. His friend Hien-Hsiung Huang, who is also the current president of Wintek Corporation, offered him a chance to work night shift in UMC just to earn some extra money before his next voyage. The payment was way lower than being a second mate, and the condition is not that good, but Dr. Wang took this chance. “Working night shift is quite a tiring job. Not many people could hang in there for over three months,” said Dr. Wu who in fact worked there for over a year.

From then on, Dr. Wang resigned his work at sea and worked in UMC for about 8 years. In 1989, he was transferred to Unimicron as a fab chief, a company making printed circuit boards (PCBs). Two years later, he left to start YoungTek Electronic Crop. Three more years later, Dr. Wang started another company— Harvatek.

Previous Working Experience Paving Ways to Success

Harvatek is the first company in Taiwan to manufacture surface mount device (SMD) LED. Surface mount technology is a method to mount electronic circuits onto the surface of a PCB. SMD LED accordingly is to mount LED onto the PCB, and through this way reduces size and weight than conventional lamp LEDs. Just around the time then, telecommunication market was about to take off. SMD LEDs with its features of small size, energy efficiency, and long lifespan, became in great demand. Harvatek, yet a relatively young LED company, had already paved its way to success.

Dr. Wang attributes Harvatek’s success to previous working experience, and appreciates UMC and Unimicron that had taught him so much about IC and PCBs. Now, Harvatek is the world’s leading

by Angel Chiou

Fig.1 Bily Wang, the Chairperson of Harvatek, believes he entered into LED industry by accident.

Courtesy: PIDA


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company in SMD LED, and Dr. Wang is also the one who knows best about PCB in Taiwan LED industry. The bold decisions he made to leave sea for working as a night shift and to transfer to Unimicron equipped him the necessary conditions to succeed in his future enterprise. “Changes could be opportunities. When it comes to you, take it. You will never know what it would bring to you,” he concludes. “If I decide to make SMD LEDs and then start to learn about it, that would be too late.”

Strong Growth in 2009

China and Taiwan are the major market of Harvatek’s SMD LEDs, mainly used as backlight in handset products. In 2009 Q1, the global downturn struck the cell phone market, resulting in a revenue decline in Harvatek. Since the second quarter, however, Harvartek’s revenue was stimulated by demands from China white box cell phones and small-medium-sized products, reaching total revenue

of TND 655 million dollars in Q2, a 38% growth in comparison with Q1’s NTD 476 million. In Q3, Harvatek’s capacity utilization rate rose from 40~50% in the first second year to over 70%, leading a revenue growth at 23%.

Regarding the product shares, Harvatek makes some change this year by turning more focus on backlight applications in medium and large area products, and at the same time enters markets of NB keyboard or lighting. In order to meet the adjustment in product share, the company started its first phase product line expansion on August. It is expected that the Harvatek will increase its total package capacity by 20%.

According to Dr. Wang’s colleagues, Dr. Wang is a very creative person who always has ideas regarding LEDs. Bold and innovative as he is, Dr. Wang will keep popping up ideas and definitely carry them out in actions. “Our goal is to be the world’s leading company in SMD LED technology,” said Dr. Wang.

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Source: Harvatek

Fig.2 Harvatek is the first company in Taiwan to manufacture surface mount device (SMD) LED


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Unity Opto: Always Looking Ahead

According to the statistics of Photonics Industry & Development Association (PIDA), the percentage of LED backlight units used in LCD TVs is estimated

to be 2.5% in 2009, which is expected to rise to approximately 10% in 2010. The success of Samsung’s LED TV creates a wave for LED backlight demand in flat panel TVs, which is no surprise for C.H. Wu, the chairman of Unity Opto Technology Co. Ltd. When competitors are busy trying to get their products evaluated and approved to a supply chain of major LCD TV makers, Unity Opto has already been shipping its LED backlight modules to Samsung, which in return, has bolstered and is expected to support a strong growth in its revenue.

Seeking new opportunities

As Wu stated “We’re always looking ahead for market opportunities”, which pretty much described

the strategy of Unity Opto— who dares to seek and grasp the new opportunities so creates the market of its own. A fresh example is when the worldwide economy was experiencing a downturn in 2007-08, Wu saw a new opportunity in LCD backlighting for LED and made an early move into the market. Everyone now knows LED technology has been proven to be able to bring higher contrast ratio, slimmer designs and improved energy efficiency to LCD TVs. But two-three years ago, it was a rather new concept and regarded as “futuristic” when Wu endeavored to forge the applicable products.

Unity Opto Technology was founded in May 1993 at Sanchung City of Taipei County. It started with IR products that are used in computer peripherals and then quickly stretched its arms into products for wireless, advertising, indication, automobile, LCD backlight and direct lighting. It is now the home of 1,330 employees spreading among Sanchung Taiwan, Shenzhen and Yangzhou China with monthly revenue ever achieving NTD $460 million and steadily growing.

Two years ago, when the company was caught at the crossing due to an unexpected government policy. The company spent a few months figuring out whether it should stick to its key technologies, including GaP green and red, GaAsP orange or high efficiency red and GaAsP yellow that were used in mouse and consumer IT products, or it should turn to an advanced yet unknown world of LCD TV. C.H. Wu and the management team finally decided to take a leap into LCD backlighting based on the confidence to its R&D capability.

Winning strategy

When asked about how to build the core competency of Unity Opto, Wu commented a c om m on p h e n om e n on f or Ta i w a n L E D

by PIDA

Fig.1 Wu found the success factors in LED industry are to coop-erating with customers in new application development

Courtesy: PIDA


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manufacturers: everyone is looking for what seems to be profitable and rushes to do the same thing. In the end, no one really gets profit in such copy-cat strategy. “I think it’s important to build in the mentality that ‘we do what others don’t, and we don’t do what others do,’” said Wu. In other words, Unity Opto is looking for applications specific to its strength and customers tailored in development of application so it does not have to compete with rivals fiercely in price.

Wu attributed his market sense that was brewed when he worked for LiteOn. At that time, he explored and studied the LED market in every aspect to build his own ways of thinking on predicting market development. When he established Unity Opto, he first tried to practice his theory in IR products and entered the computer peripherals market. In 1994, Unity Opto successfully launched high-speed IR products. By the time of 1995, the company has successfully penetrated the infrared wireless market and beat Japanese rivals in the Japan remote control market.

Wu found the success factors in LED industry are to cooperating with customers in new application

development so to ensure a spot in an emerging market in the early stage and further to tailor the product specifications so to ensure the leadership in the new market. By doing so, Unity Opto is able to move a step ahead in the competition.

Unity Opto relentlessly develops new applications for LED to replace the old products. “We have a clear strategy for our products: we shift our products having gross profit less than 25% or being developed for more than two years to overseas manufacturing bases that enjoy lower production cost.” As of now, Unity Opto Taiwan focuses on the introduction of new/ high-end products; Shenzhen and Yangzhou China are responsible for building IR products and LED products in mass production, which help to save cost and maintain price competitiveness.

In this highly competitive technology field, nothing really stays the same. Therefore, Unity Opto has regarded “change is the only unchanged principle”. Wu stresses on market-driven R&D efforts. He works closely with customers to keep up with the market demand in real time and to find new application field which no one sees before. Presently Unity Opto has

Fig.2 Unity Opto explores the China LED street lamp marketCourtesy: Unity Opto


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been promoting indoor lighting products, as Wu stated, “This is a promising market two to three years from now.”

Riding with the success of LED Backlight

Unity Opto’s invested efforts in the LED backlight for the medium- and large-sized LCD panels paid off well in 2009, stimulated by the surged demands from Samsung’s LED TV supply chain and increased LED notebook penetration. As a result, Unity Opto’s revenue for 2009 rises significantly from 2008, so as the margins. With orders continue to boom in 2009 Q4, Unity Opto’s November revenue hovered at NT$391 million for a normally slow month and set a record high year-over-year growth of 85.1%.

Nowadays, the sales of LED for LCD backlight accounts for around 70% of Unity Opto’s total revenue, which makes Unity the biggest local LED vendor for LCD backlight. Furthermore, Unity Opto expects to reap even more revenue and profit in the coming year 2010 as the strong demand in large panel backlighting prevails.

Further Ahead

Given the urge for environmental protection and power saving. Unity believes the fast penetration in LCD backlight shall continue in the coming years. First in handset, now in notebook/ netbook and would be in TV and monitor. In addition, increasing LED adoption in direct lighting provides an amble opportunity for LED industry to grow. Unity has very strong confidence to outgrow the LED industry average and the LED industry to outgrow the economy in the foreseeable future.

To prepare for this great opportunity, Unity has been concentrated to continuously enhancing its edge in the market of LCD backlight with new alliance and more comprehensive product offering while allocating appropriate resources to develop the killer application products for the market of direct lighting that is expected to become more mature three years from now.

In the future, as Wu noted, “the world is moving into a greener tomorrow, Unity’s concern for the ecological environment is making a difference— more green products, more power saving. Each day we move a step closer to the goal of sustaining ecosystem. Unity strives to provide the best products to fulfill customers’ need and accomplish environmental protection. With joint efforts by our customers and our suppliers, Unity Opto continues to make progress on daily basis to future success.”Courtesy: Unity Opto

Revenue for November Accu. Revenue Jan.-Nov.

2008 211 2,863

2009 391 3,610

Growth rate (%) 85.1 26.1

Table 1 Revenues of Unity Opto

Source: PIDA compiled

(unit: million NT dollars)


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Seoul Semiconductor— Leader of AC LED

Seoul Semiconductor is one of the world’s leading manufacturers in LED industry, and is the first company that put R&D effort into alternative current LED (AC LED in short).

In November 2009, the company won the award in the “Power Device and Module” section in the 2009 EDN Innovation Awards with LCW100Z1 LED, proving again the company’s outstanding capacity in LED technology. The following are selected questions from an exclusive interview with Seoul Semiconductor.

Seoul Semiconductor is the first company that taps AC technology. Please tell us Seoul Semiconductor’s recent development in AC LEDs and the distinguishing features between AC and DC LEDs.

Seoul Semiconductor has been developing LED

lighting technology since 2003, taking into account that AC LED which can be used without a converter will be the core part of LED lighting technology which replaces incandescent electric bulbs and fluorescent lamps. And in 2005, the company developed ACRICHE for the first time in the world and succeeded in the mass production in 2006.

As DC LEDs and AC LEDs are totally different when it comes to their applications, the development is underway with focus on each field. Because portable flash lights (torches) or mobile products like cell phones use low voltage, DC LED is used in those products. On the contrary, the light sources for general lighting products, signboards, streetlights and electric home appliances use high voltage like 110 - 220V, AC-driven Acriche is adequate for these products. In particular, the most important feature of

by PIDA

Fig.1 The Korea-based Seoul Semiconductor is one of the world’s leading LED manufacturer.

Courtesy: Seoul Semiconductor


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Item Acriche A4 DC LED

Source Luminous Efficacy (lm/W) 75 80

Electric Power Source Efficiency (%) 90 70

Directional Fixture Efficiency (%) 90 90

Actual System Luminous Efficacy (lm/w) 60.8 50.4

Power Consumption(W) (500 lm benchmark) 8.2 9.9

CO2(kg)(8hrs/day) 10,464 12,633 + α

(α: drive circuit CO2)

Lifetime(8Hrs/day)

35,000 Hrs(12 Years)

20,000 Hrs(6.85 Years)

(AC/DC Converter)

Acriche is its long life. An additional circuit like an AC-DC converter is needed if general LED is used in high voltage products, but the life of a converter amounts to less than 20 thousand hours, so it is totally insufficient to cover the life of LED. However, because Acriche is driven by an AC power source with no need of an AC-DC converter, it has a long duration of 35 thousand hours.

In 2009 summer, Seoul Semiconductor forms a joint venture with Taiwan’s HUGA Optotech Inc. and Seoul Optodevice Co. Ltd. How these three companies cooperate with each other? How Semiconductor benefits from the team-up?

Seoul Semiconductor and Seoul Optodevice have agreed to jointly produce LED chips by establishing a joint stock company with Huga Optotech, one of the two largest chip makers in Taiwan to keep the balance of demand and supply due to an increase in the demand on LED in the market. This agreement has been signed to strengthen the competitiveness through the equipment investment and personnel management on the basis of the two companies’ strengths. The joint stock company is established with the stake of 9% of Seoul Semiconductor, 42% of Seoul Optodevice and 49% of Huga Optotech.

The information on the distribution of profits is confidential and we cannot say anything about it.

Regarding Seoul Semiconductor’s newly-launched product “Acriche,” what is its strength comparing with the existed AC LED products?

The most important feature of Acriche A4 series is that it boasts the world’s best luminous efficacy among Warm White LED series currently in mass production. In addition, unlike existing Acriche products (A3 series), 50V can be realized per one package and 2 – 4 sets can freely realize 110V - 220V, and 100V to 230V can be freely realized with no need of an additional device like a converter because it is one of Acriche products. Furthermore, Acriche A4 series products presented a new technology that can realize 75lm/W in CRI 85 on the basis of color temperature of 3000 K, which is the world’s best level! This is the first AC LED that surpassed the brightness efficiency of DC LED. Considering that the two thirds of the world’s lighting market is composed of Warm White, we can say that this is a customized product for this market. We stressed that this can give the best design freedom to light bulbs or lighting fixtures which use various LED lightings.

Figure 2 shows the comparative result of Acriche

Fig.2 The Comparative result of Acriche A4 and general DC LED



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A 4 a n d other general DC

LED. It is demonstrated that Acriche A4 is more excellent with regard to the actual efficiency when driven, annual electricity costs, CO2 emissions and life.

AC LED is said to better satisfy the need of niche market. What is your prospect for AC LED’s market trend?

Due to the problems of price of LED lighting, it is in the initial phase of application in the current LED lighting market. However, on the global level, the existing lighting products that involve environmental pollution problems are being driven out by environmentally friendly products like LED lighting products.

In particular, it is expected that among others the demand on AC LED in the market will be sharply increased. While there are basic needs connected with the replacement of LED lighting in the market, AC LED will get more and more attention because of its significant decrease in maintenance and repair costs because it shows a lower conversion loss and longer life compared to existing DC LED as it is driven by an AC power source without any additional device.

For that matter, various prominent companies in the world have a lot of interests in the development of AC LED, and the development of AC LED with a high efficiency is expected to lead to an increase in the sales of a company. As previously described, Seoul Semiconductor is already in possession of the original

p a t e n t e d technology for the development of AC LED since 2004, and the research and development is ongoing to realize production capacity adequate for demand, high efficiency and low costs. Seoul Semiconductor will make Acriche the representative brand of AC LED in the market.

In addition to Korea, Taiwan also puts effort into AC LED to be more competitive internationally. How do you see Taiwan’s AC LED development?

It is very important to secure the original patent for the development of AC LED. Due to the fact that Seoul Semiconductor possesses the original patented technology for the development of AC-powered LED, it will be hard to avoid patent barrier. We can expect that not only Taiwan but also other countries in the world will make a steady effort to develop AC LED. Now is the time to carry out the research and development to expand the efficiency and applicability of AC LED, not to mention to secure the original patent. At the moment, it seems to be important to be wise to foresee the market.

Fig.3 Seoul Semiconductor’s Acriche Family Exceeds DC LED efficiency



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Optolink International Edition 2009 Q4 Issue

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