2010 Report on Global and China LED Industry

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168Report-China Market Research Reports

2010 Report on Global and China LED Industry Hard copy :2700 USD Electronic copy (PDF) :2800 USD Hard and Electronic copy : 4200 USD Pages: 207 Tables and figures : Published date :Jul, 2010 Publisher: 168Report Contact: Mr. Peter Lee +86-10-82965190 +86-13161572746 sales@168report.com Summary: LED is currently the most popular investment topic in the electronic field. Take the MOCVD equipment of LED upstream as an example, the estimated shipment of MOCVD equipment in 2010 will reach 662, equivalent to the sum total of the previous three years, and promisingly, Year 2011 will maintain or even exceed this high shipment. The unit selling price of MOCVD equipment is about US$1-2 million, and Chinese government offers a maximum subsidy of 50%, consequently, there occurs an upsurge of LED investment and a boom in MOCVD purchase in China. In 2010, the quantity of MOCVD equipment registered with National Development and Reform Commission (NDRC) alone is nearly 700, and some manufacturers even purchase directly instead of waiting for the subsidy of NDRC. MOCVD equipment is almost monopolized by German AIXTRON and American VEECO, but the output capacities of both companies are limited, so, the orders have been arranged till 2012. LED market made a great leap in the second half of 2009. On the one hand, the application of LED backlight by notebooks surged from 15% at the end of 2008 to approximately 60%, and is expected to hit 88%, or 98% according to the prediction of some institutions, by the end of 2010. On the other hand, the application of LED backlight by LCD TV increased from 0.01% at the end of 2008 to 10%, and is expected to reach 27% at the end of 2010, while the application of LED backlight by LCD display grew from 0.01% at the end of 2008 to 5%. The LED market has expanded dramatically, from US$7 billion in 2009 to US$10.7 billion in 2010, which is a growth rate unreachable by any other electronic products. Along with growing LED brightness and falling prices, the share of LED in general lighting field is expected to be increased greatly; general lighting market is of huge potential with the market size reaching US$100 billion. Promisingly, the LED market can reach US$20.4 billion in 2012. The global LED market falls into three camps. The 1st camp takes Japan, Europe & America as the representatives. The global Top 5 LED giants all belong to this camp, namely NICHIA, TOYODA GOSEI, LUMILEDS, CREE and OSRAM; 168Report Mr.Peter Lee sales@168report.com 13161572746 8610-82965190

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168Report-China Market Research Reports

this camp also covers TOSHIBA, PANASONIC and SHARP. It possesses high-class technologies, abundant patents and has been dedicated to the UHB-LED field for many years, aiming at both general lighting and automotive lighting markets. Japanese enterprises give a little attention to the LED in the backlight of consumer electronics, while European and American enterprises show no interest at all. Manufacturers in South Korea and Taiwan form the 2nd camp. With integrated consumer electronics industry chain and interest in the LED for the backlight of consumer electronics, they are experiencing high-speed growth despite the gap with European and American enterprises in technology. The manufacturers in Chinese Mainland belong to the 3rd camp. They are of small scale, scattered, and of low technology. Take packaging as an example, there are not more than 5 packaging plants in South Korea, while in Chinese Mainland, there are nearly 1,000, many of which are dealing with resin package of minimum technical content and few of which are engaged in SMD packaging. The annual revenue of all these manufacturers fails to reach that of EVERLIGHT, the leading enterprise in Taiwan, and there are also large discrepancies between EVERLIGHT and South Korean manufacturers. The technologies possessed by manufacturers in Chinese Mainland are low-level and many of the manufacturers produce quaternionic green/yellow LED which is mainly applied in outdoor landscape, decoration or advertisement. Mainland China is the world’s largest production base of consumer electronics, but the purchasing right is centralized in the hands of Taiwanese and South Korean manufacturers. As a result, the mainland manufacturers can only see the rapid development of LED market in consumer electronics field but cannot benefit from it. As for the general lighting field, it is more beyond their reach due to their backward technology. The mainland manufacturers cannot share the high-growth LED market, but they have the highest investment enthusiasm and LED projects start everywhere. Large quantities of MOCVD equipment have been bought in and the LED project in Wuhu alone needs more than 200 sets of MOCVD equipment. A single set of MOCVD equipment possesses over 2,000 parameters, so, it is not so easy to produce qualified products. In addition, there are numerous thresholds for LED patent, and incaution will cause troubles. Some enterprises, especially NICHIA, are never bored with patent lawsuits. Revenue of Global 21 LED Epitaxy Manufacturers, 2008-2010

168Report Mr.Peter Lee sales@168report.com 13161572746 8610-82965190

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Table of Contents 1. LED Profile 1.1 Brief Introduction 1.2 Glossary 1.3 Patent 1.4 Technique Process 2. LED Market 2.1 Overview of LED Market 2.2 Medium- and Small-sized LED Backlight Market 2.2.1 Cell Phone 2.2.2 Digital Camera 2.3 LED for Notebook Backlight 2.3.1 Notebook Market 2.3.2 Notebook Industry 2.3.3 Intro to Notebook Backlight LED 2.3.3 Notebook LED Backlight Market 2.4 LED for LCD TV and LCD Backlight 2.4.1 LED TV Industry Chain 2.4.2 LED TV Classification 168Report Mr.Peter Lee sales@168report.com 13161572746 8610-82965190

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168Report-China Market Research Reports

2.4.3 LED TV Market 2.4.4 LED Display 2.5 LED Automotive Illumination 2.5.1 Brief Introduction 2.5.2 Developments 2.5.3 Market 2.6 Outdoor Display Panel Market 2.6.1 Outdoor LED Display Panel Market Worldwide 2.6.2 Outdoor LED Display Panel Market in China 2.6.3 Tulip Mega Media 2.6.4 Analysis of Olympic LED Projects 2.6.5 Analysis of LED for Shanghai Expo 2.6.6 Beijing Leyard 2.6.7 Shanghai Sansi Technology 2.7 LED Street Lamp 2.7.1 Cost Comparison between LED Street Lamp and Traditional Street Lamp 2.7.2 Policies for LED Street Lamp Worldwide 2.7.3 LED Street Lamp Market Worldwide 2.7.4 LED Street Lamp Market in China 2.7.5 “Ten Thousand LED Lights in Ten Cities” Project 2.7.6 Progress of the “Ten Thousand LED Lights in Ten Cities” Project 2.7.7 LED CITY Project 2.7.8 Solar LED Street Lamp 2.8 General (Universal) Illumination 2.9 LED Traffic Lights 3. LED Industry 3.1 Profile of LED Industry Chain 3.2 LED Substrate 3.2.1 Sapphire Glass Substrate 3.2.2 Sapphire Glass Substrate Market 3.2.3 Sapphire Substrate Industry 3.2.4 Rubicon 3.3 MOCVD Industry 3.4 LED Industry Midstream - Epitaxy 3.5 LED Industry Downstream - Packaging 3.6 Regional Layout of LED Industry 3.7 LED Industry in Taiwan (China) 3.8 LED Industry in China 4. LED Vendors 4.1 EVERLIGHT 4.2 EPISTAR 168Report Mr.Peter Lee sales@168report.com 13161572746 8610-82965190

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4.3 GENESIS 4.4 ARIMA 4.5 FOREPI 4.6 BRTLED 4.7 OPTOTECH 4.8 HARVATEK 4.9 TEKCORE 4.10 UNITYOPTO 4.11 HUGA 4.12 CREE 4.13 TOYOTA GOSEI 4.14 NICHIA 4.15 OSRAM 4.16 PHILIPS LUMILEDS 4.17 STANLEY 4.18 SEOUL SEMICON 4.19 SILAN AZURE 4.20 SANAN OPTO 4.21 LIANCHUANG OPTO 4.22 FANGDA 4.23 SAMSUNG LED 4.24 LITEON 4.25 CITIZEN 4.26 DALIAN LUMEI OPTO 4.27 SHANGHAI EPILIGHT TECHNOLOGY 4.28 SHANGHAI RAINBOW 4.29 HUALEI OPTO 4.30 NATIONSTAR 4.31 LEXTAR 4.32 TYNTEK 4.33 EDISON 4.34 LG INNOTEK 4.35 INSPUR HUAGUANG 4.36 CHANGELIGHT 4.37 NEO-NEON 4.38 ELEC-TECH 5. MOCVD Vendors 5.1 AIXTRON 5.2 VEECO

Tables and Figures 168Report Mr.Peter Lee sales@168report.com 13161572746 8610-82965190

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168Report-China Market Research Reports

LED Categories LED Patent Distribution Price of Notebook SMD LED, 2008-2011 Price of LED for TV, 2008-2011 Price of LED for General Lighting, 2008-2011 Market Shares of Global Cell Phone Display Manufacturers by Shipment, 2009 Market Shares of Global Cell Phone Display Manufacturers by Sales, 2009 Global Cell Phone, Digital Camera, Handheld GPS Navigator and PMP Shipment, 2008-2011E Global Cell Phone Shipment, 2007-2012E Global Cell Phone Shipment, Q1 2007 - Q1 2010 Market Shares of Major Cell Phone Manufacturers, Q1 2010 LED Demand of Cell Phone, 2006-2010 Digital Camera Shipment, 2004-2011E Market Shares of Major Digital Camera Manufacturers by Sales Volume, 2009 Market Shares of Major Digital Camera Display Suppliers by Sales Value, 2008 Netbook Shipment, 2007-2013E Market Shares of Global Major Notebook OEMs, 2006 Shipment of Global Major Notebook OEMs by Brand, 2007 Market Shares of Global Major Notebook OEMs, 2008 Global Notebook LED Backlight Penetration Rate, 2007-2013E Market Shares of Global Notebook Backlight Module Manufacturers, 2010 Market Shares of Global LED-TV Epitaxy Manufacturers, 2010-2011E LED TV Penetration Rate, 2008-2012E Proportion of LED Backlight of Major FPTV Manufacturers Market Shares of Global Major FPTV Manufacturers, 2009 Market Shares of LCD-TV Manufacturers in China by Sales Volume, Jan. 2009 & Jan. 2010 Market Shares of LCD-TV Manufacturers in China by Sales Value, Jan. 2009 & Jan. 2010 Distribution of Manufacturers by Quantity of LED Display Models Launched, H1 2010 Distribution of LED Displays by Size, H1 2010 Share of LED Display, 2008-2012E PRIUS LED Auto Lamp LED Auto Lamp Roadmap of SKOITO Cost and Illumination of Five Auto Light Sources, 2007-2014F LED Auto Lighting Market Scale, 2008-2015E Global Outdoor LED Display Board Market, 2007-2012E Market Shares of Outdoor LED Advertising Agencies, 2009 China Outdoor LED Display Board Market China Outdoor LED Display Industry Chain Major Partners of TULIP MEGA MEDIA Distribution of TULIP MEGA MEDIA in China Global LED Street Lamp Market Scale, 2008-2013E Global LED General Lighting Market Scale, 2008-2013E 168Report Mr.Peter Lee sales@168report.com 13161572746 8610-82965190

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168Report-China Market Research Reports

LED Bulb Sales Volume of Japan, 2009-2015E LED Sapphire Substrate Market Distribution by Size, 2005-2012 Geographical Distribution of GaN LED Sapphire Substrate Downstream Market, 2008 Market Shares of Major LED Sapphire Substrate Manufacturers, 2010 Global MOCVD Equipment Market and Market Shares of Major Manufacturers, 1998-2009 Distribution of LED Output Value by Region, 20008-2013 LED Output Value of Taiwan, 2006-2013 LED Epitaxy Shipment of Taiwan by Color, 2009 LED Packaging Shipment of Taiwan by Technology, 2009 Relationship among LED Enterprises in Taiwan Market Shares of Major LED Epitaxy Manufacturers, 2009 Market Shares of Major LED Packaging Manufacturers in Taiwan, 2009 China LED Industry Output Value Distribution, 2009 Organization of EVERLIGHT Revenue and Operating Margin of EVERLIGHT, 2002-2010 Product Structure of EVERLIGHT by Revenue, 2008-2010 Product Structure of EVERLIGHT by Downstream Application, 2005-2010 Revenue and Operating Margin of EPISTAR, 2000-2010E Revenue and Gross Margin of EPISTAR, Q2 2009 – Q1 2011 Revenue of EPISTAR by Product, Q1 2008 – Q4 2009 Product Distribution of EPISTAR by Downstream Application, 2010 Operating Income and Gross Margin of GENESIS, 2003-2010 Roadmap of GENESIS Revenue and Gross Margin of ARIMA, 2002-2009 Revenue of ARIMA by Product, 2006-2009 Revenue and Operating Margin of FOREPI, 2002-2010E Revenue of FOREPI by Product, Q1 2008 – Q4 2009 Revenue and Operating Margin of BRTLED, 2002-2010E Revenue of BRTLED by Product, 2008-Q1 2010 Revenue and Gross Margin of OPTOTECH, 2004-2010E Revenue of OPTOTECH by Product, 2008-2010 Revenue and Operating Margin of HARVATEK, 2000-2010 Product Distribution of HARVATEK by Downstream Application, Q1 2010-Q4 2011 Revenue and Gross Margin of TEKCORE, 2005-2010E High Illumination LED Capacity of TEKCORE, Q1 2009 – Q4 2010E Revenue and Operating Margin of UNITYOPTO, 2004-2010E Revenue and Operating Profit of HUGA, 2004-2010 Revenue and Monthly Growth Margin of HUGA, Jan. 2008 – May 2010 Revenue and Operating Margin of CREE, FY2004-FY2010 Global Presence of CREE Revenue of TOYOTA GOSEI by Product, FY2009 Revenue and Operating Margin of TOYOTA GOSEI, FY2005-FY2010 Revenue of TOYOTA GOSEI LED by Product, FY2005-FY2011 168Report Mr.Peter Lee sales@168report.com 13161572746 8610-82965190

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Revenue and Operating Profit of NICHIA's LED Division, FY2004-FY2010 Revenue and Operating Margin of OSRAM, FY2004-FY2008 Revenue of OSRAM by Region, FY2008 Revenue of OSRAM by Product, FY2008 Geographical Distribution of OSRAM Employment, FY2008 Revenue of PHILIPS (LUMILEDS) by Region, 2004-2008 EBIT of PHILIPS (LUMILEDS), FY2004-FY2008 Revenue of PHILIPS (LUMILEDS) by Product, FY2009 Revenue and Operating Margin of Stanley, FY2004-FY2010 Revenue and Operating Margin of Stanley’s Auto Lighting Division, FY2005-FY2010 Revenue and Operating Margin of Stanley’s Electric Lighting Division, FY2005-FY2010 Core Competitiveness of SEOUL SEMICON Code of Conduct of SEOUL SEMICON Products of SEOUL SEMICON Revenue and Operating Margin of SEOUL SEMICON, 2003-2011 Product Structure of SEOUL SEMICON by Downstream Application, Q1 2009 – Q4 2010 Global Presence of SEOUL SEMICON Vertical Integration of SEOUL SEMICON Downstream Application Distribution of SEOUL SEMICON in1999, 2002, 2005, 2008 & 2009 Revenue and Operating Margin of SILAN, 2003-2010 Revenue and Gross Margin of SANAN OPTO, 2005-2010 GaN Epitaxy Cost Structure of SANAN OPTO GaAs Epitaxy Cost Structure of SANAN OPTO Downstream Application of SANAN OPTO Products LED Operating Income of Samsung Electro-Mechanics by Application, 2005-2009 Revenue and Operating Margin of CITIZEN, 2005-2010 Revenue Structure of CITIZEN by Product, FY2005-FY2010 Revenue and Operating Profit Margin of AXT, 2004-2010 Revenue Structure of AXT by Product, 2006-2009 Revenue Structure of AXT by Region, 2006-2009 Revenue and Operating Profit Margin of TYNTEK, 2004-2010 Revenue and Operating Profit Margin of EDISON, 2006-2010 Output Capacity of LG INNOTEK, 2010Q1-2011Q4 Turnover and Gross Margin of NEO-NEON, 2005-2009 Revenue of NEO-NEON by Product, 2005-2009 Revenue of NEO-NEON by Region, 2008 vs. 2009 Order Size of AIXTRON, Q2 2008- Q1 2010 Revenue of AIXTRON, 2003-2010 Revenue of AIXTRON by Application, 1998-2010Q1 Global Presence of AIXTRON Employees of AXITRON, 2003-2008 Revenue of AIXTRON by Region, 2007-2010Q1 Revenue and Operating Profit of VEECO, 2004-2008 168Report Mr.Peter Lee sales@168report.com 13161572746 8610-82965190

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Revenue of VEECO by Product, 2006-2010Q1 Selling Price of Typical LEDs, 2010 Digital Camera OEM Relationship and Shipment of Main Manufacturers, 2008-2010 LED-TV Industry Chain of Samsung and LG Specifications of LED Street Lamp Cost Structure of 30-150 Watt Street Lamp Key Players in the Links of LED Industry Chain MOCVD Equipment Shipment, 2007-2012 Equipment Quantity of Major LED Epitaxy Manufacturers, 2010 Equipment Quantity and Capacity of Epitary Manufacturers in Taiwan, 2008-2009 Revenue of 21 LED Upstream Enterprises Worldwide, 2008-2009 Operating Margin of Nine LED Epitary Manufacturers Worldwide, 2008-2010E FinRevenue of Seven LED Downstream Manufacturers Worldwide, 2008-2010E Ranking of Taiwan’s Epitary Manufacturers by Revenue, Jan.-May 2010 Ranking of China’s LED Epitary Manufacturers by Revenue, 2009 Auto Products of LED LENSER Financial Data of OSRAM China, 2004-2007 Revenue of Lumileds, 2005-2010 Financial Data of Philips Automotive Lighting Hubei Company, 2004-2007 Revenue of Stanley by Region, FY2008-FY2009 Operating Profit of Stanley by Region, FY2008-FY2009 Financial Data of Tianjin Stanley, 2004-2007 Financial Data of Guangzhou Stanley, 2004-2007 Financial Data of Shenzhen Stanley, 2004-2007 Financial Data of Suzhou Stanley, 2004-2007 MOCVD Equipment Quantity of SANAN OPTO Output Capacity Arrangements of SANAN OPTO, 2008-2011 Photoelectric Product Revenue of CITIZEN, FY2004-FY2008 Income Statement of NATIONSTAR, 2007-2009 Financial Situation of NEO-NEON, 2005-2009

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