Samsung, LG Mount LED Competition Pressure With Aggressive Pricing

Taipei, Dec. 14, 2011 (CENS)--Samsung and LG will launch own-brand 60W LED light bulbs at retail prices of US$10-12 sometime in the second half of 2012, mounting competition pressure to major players of LED lighting industry while earlier realizing the availability of high-power LED bulbs in consumer market.

Taiwan's industry executives pointed out that Samsung and LG have shown aggressive attempt to become world leader in the LED lighting industry with strong support of South Korean government.

Samsung has equipped itself with integrated LED manufacturing capability involving epi-wafer and package manufacturing. Accompanied by branding operation and huge number of application products, the company's LED operation is unnerving Taiwan's LED makers.

Y.F. Yieh, chairman of Everlight Electronics Co., Ltd. of Taiwan, reportedly the world's LED packager, pointed out that South Korea is on the verge of dethroning Taiwan as the world's biggest LED supplier in terms of volume. B.J. Lee, chairman of LED chipmaker Epistar Inc. of Taiwan, recognized as the world's biggest supplier of blue chips, noted that Taiwan's LED industry would fall into the low-margin contract manufacturing category if it fails to build up branding operation in two years.

Epistar executives said that US$10 60W LED bulbs are more competitive than compact fluorescent lamps (CFLs) given that their average lifespan is triple that of CFLs.

Samsung and LG's plans are more aggressive than that of LSG of the United States, which has planned to introduce US$15 60W bulbs in 2012.

Taiwan's industry executives urged the government to take actions to help the island's LED industry before it becomes another struggling industry in the wake of the island's DRAM and LCD industry.

Global economic slowdown has made LED lighting a prominent industry for the impressive energy saving merit of the lamps. Goldman Sachs & Co. forecast global market of LED lighting to grow to the size of US$11 billion in 2015 and at compound annual growth rate (CAGR) of over 30% until 2020.