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Optolink International Edition 2009 Q4 Issue

Optolink International Edition 2009 Q4 Issue

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Published by PIDA_OLIE
Industry News
‧P04 Global Outlook of LED Industry ->
‧P06 2009 Taiwan LED Industry Overview ->
‧Large-Sized LED Backlighting Taking the Lead -> P08
‧Light Bulbs Off, LEDs On -> P11
‧Finding a Niche: LED Special Lighting -> P14
‧Charles K. Kao –The Father of Fiber Optics -> P19
‧STSP Aiming for Sustainable Industry Development in Taiwan -> P21

Exhibition Watch
‧LED Lighting Taiwan 2010: A Greener Taiwan -> P26
‧LEDs in Prosperity— Special Report on LED Japan Conference & Expo 2009 -> P28

Company Profiles
‧LiteOn: Lit up the World -> P33
‧Everlight Prepares for the Future with LED Lighting -> P35
‧Epistar Expands to Secure its Edge in LED Industry -> P37
‧Harvatek Sailing to Success -> P40
‧Unity Opto Technology: Always Looking Ahead -> P42
‧Seoul Semiconductor— Leader of AC LED -> P45
Industry News
‧P04 Global Outlook of LED Industry ->
‧P06 2009 Taiwan LED Industry Overview ->
‧Large-Sized LED Backlighting Taking the Lead -> P08
‧Light Bulbs Off, LEDs On -> P11
‧Finding a Niche: LED Special Lighting -> P14
‧Charles K. Kao –The Father of Fiber Optics -> P19
‧STSP Aiming for Sustainable Industry Development in Taiwan -> P21

Exhibition Watch
‧LED Lighting Taiwan 2010: A Greener Taiwan -> P26
‧LEDs in Prosperity— Special Report on LED Japan Conference & Expo 2009 -> P28

Company Profiles
‧LiteOn: Lit up the World -> P33
‧Everlight Prepares for the Future with LED Lighting -> P35
‧Epistar Expands to Secure its Edge in LED Industry -> P37
‧Harvatek Sailing to Success -> P40
‧Unity Opto Technology: Always Looking Ahead -> P42
‧Seoul Semiconductor— Leader of AC LED -> P45

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Industry News

4
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 Profiles
33
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
Contents
OptoLink 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.tw
Tel.: +886-2-2396-7780
Fax: +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
ad@mail.pida.org.tw
Subscriptions:
Simon Huang
simon@mail.pida.org.tw
Editorial Submissions:
Angel Chiou
(angelchiou@mail.pida.org.tw)
OPTOLINK Q4, 2009
14
http://www.pida.org.tw/olie/
35 8 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 Industry
by 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,
Uniroyal
Package
Agilent
Chip / Cutting
Epiplus, Epivalley,
Ranbo
Package
Numerous 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 / Cutting
Toyoda -Gosei
Package
Citizen, 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 Overview
by Angel Chiou
LED chip
BridgeLux, Cree, Epistar, Formosa Epitaxy,
Nichia, Osram, SemiLEDs
LED package
Everlight, LiteOn, AOT, Bright, Harvatek,
Lustrous
LED thermal module
TTIC, CCI, AVC, Neng Tyi, Lustrous, NeoPac
Opto, Advanced Thermal Devices, AuguX
LED lamp pole
Toalux, Everreaday Precision
LED street lamp system
FITI, 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
T
he 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%. Te
proportion of these two applications however slightly
shrunk in 2009 on account for the rising revenue in
signs/ displays and illumination. Te 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 / Traffc 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
8
• OPTOLINK International Edition 2009 Q4
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/Display
Signals
Illumitaion
Mobile
Automotive
Electronic Equipment/Other
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
2006 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 package
Unity Opto,
Everlight,
Harvatek, LiteOn,
LHTC, Wellypower
LED Lead Frame
I-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.
Te government plans to replace 700 thousand trafc
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. Tis 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
OPTOLINK International Edition 2009 Q4 •
9
INDUSTRY NEWS
Large-Sized LED
Backlightng Taking
the Lead
by Angel Chiou
W
ith 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. Te 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 fgure 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 thickness
NB:11mm
MNT:30mm
TV:14~50mm
NB:2.3~5mm
MNT:18mm
TV:5.9~30mm
Weight Heavy Light
Local dimming No Yes
Contrast 10
4
:1 10
6
: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
10
• OPTOLINK International Edition 2009 Q4
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 fgure 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 frst 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 i ght 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: PIDA, 2009/8
Courtesy: LG
OPTOLINK International Edition 2009 Q4 •
11
INDUSTRY NEWS Y NEWS
outnumbering the total demand from notebook and
netbooks, as fgure 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 fgure 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. Tis 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
efort from panel makers.
While LED keeps its
technological advance, it
also penetrates markets
from cell phone to large-
s i z e d pr o duc t s s uc h
as not ebook, TV and
moni t ors. Now, l arge-
sized display backlighting
is expected to become the
largest LED application
market i n near f uture.
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 Manufacturers
Coretronic 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: PIDA, 2009/8
Courtesy: SU, PIDA edits
Application Potential Motivation Challenge Driving Company
NB High

Power saving

Light weight

Thin design

Optical design
Apple, 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
12
• OPTOLINK International Edition 2009 Q4
INDUSTRY NEWS
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.” Te 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 Of,
LEDs On
by PIDA
OPTOLINK International Edition 2009 Q4 •
13
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 efectively
phased out in the near future, soonest 2010, almost all
the governments lif their fnger to promote the LED
industry. Te substantial move will change the design
invented in the 19th century by renowned engineer
Tomas Edison.
In February 2007, Australia was the bellwether
who enacted a law to ban most sales of incandescent
l ight bulbs by 2010. The Austral i an Federal
Gover nment announced mi ni mum energy
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. Te 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 efciency
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. Te
Light Emitting Diodes (LEDs) Incandescent Light Bulbs
Life Span (hours) 50,000 1,200
CRI 75 100
CCT 2,000~ 8,000 2,700
Effciency (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
14
• OPTOLINK International Edition 2009 Q4
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 Afairs launched
the “585 Plan” in 2007 in attempt to eliminate the use
of low-efciency incandescent light bulbs within fve
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. Te
government recently claimed to become the third
largest market for LED lighting in 2015. Te 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
of.
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. Te European Union hopes to save
homeowners up to $50 over the life of the bulb by
switching from incandescent light bulbs to more
efcient lighting sources..

2009
EU
Starting September
1
st
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 States
The 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
Australia
Australia enacted a
law in February 2007
that will ban most
sales of incandescent
light bulbs by 2010.
2010
Japan
In Japan, manufacturers
would have to cease
production and sales of
incandescent bulbs by
2012.
2012
Canada
The federal government
of Canada announced in
April 2007 a plan to ban
the sale of ineffcient
light bulbs by 2012.
2012
Fig.2 Governments worldwide to phase out incandescent light bulbs.
Courtesy: PIDA
Korea
Korea claim to
ban the use of
incandescent
light bulbs since
2013.
2013
Russia
Russia plans
to ban the
production and
sale of all types of
incandescent light
bulb from January
1
st
, 2014.
2014
China
China government claimed to
replace 30% of the outdoor
lighting with LED, and to
become the third largest
market for LED lighting in 2015.
2015
OPTOLINK International Edition 2009 Q4 •
15
INDUSTRY NEWS
by PIDA
Finding a Niche:
LED Special Lightng
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,
trafc 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. Te frst 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 diversifed.
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-
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• OPTOLINK International Edition 2009 Q4
INDUSTRY NEWS
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.
Repl acement l amps, a l i ghti ng 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.
OPTOLINK International Edition 2009 Q4 •
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INDUSTRY NEWS
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17
INDUSTRY NEWS
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. Te
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 fve 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
diferent shapes and appearances. Te demand will
likely to increase slightly to hit US $26 million in
2012. Security lighting mostly goes to the security
service frms 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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INDUSTRY NEWS
D
r. 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". Tis late honor recognized
his achievements in the fber communication, which
is definitely a critical factor to the progress of the
human society.
Kao frst proposed that glass fber 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 frstly proposed, the ideas
described laid the foundation for today's optical fber
communications.
Charles K. Kao –
The Father of Fiber Optcs
by 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
OPTOLINK International Edition 2009 Q4 •
21
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 fber optics.
“Years have passed since the introduction of frst
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 fbers 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 fbers,” said Kao.
There’s a verse best describing Kao as we’re
praising his contribution to the optical fber 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 industry
Courtesy: PIDA
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INDUSTRY NEWS
F
ocusi ng on economi c devel opment
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. Tere’s no doubt
STSP Aiming for
Sustainable Industry
Development in Taiwan
by PIDA
Fig.1 Director-
general Chen
said there’s no
time to waste on
the development
of STSP
Courtesy: STSP
OPTOLINK International Edition 2009 Q4 •
23
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. Te 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.
Chen al s o s ai d t hat t he STSP
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. Te company
Fig.2 The welcome landmark of STSP
Courtesy: STSP
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• OPTOLINK International Edition 2009 Q4
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
eforts. Tat 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 suppor t t hes e i ndust r i es , t he STSP
Administration also promotes the “service cluster”
concept, such as establishing a sterilization and medical
device verifcation 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 drafing 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 foor 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 certifcation
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 fve 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.
Te 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
OPTOLINK International Edition 2009 Q4 •
25
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 ” certifcate 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 frst “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 benefts for the site environment. 2. Promote
the introduction of green energy industries, green
buildings and energy-efficient green transportation.
Improve energy consumption efciency 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.
Fo r e x a mp l e , t h e
Institute of Nuclear Energy
Research (INER), Atomic
Energy Council, is going
to est abl i sh t he HCPV
( Hi gh Conc e nt r at i on
Photovoltaic) Qualification & Development Center
at Kaohsiung Science Park with the construction of
HCPV power generation module certifcation 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 diference 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 4
th
elevated water tank and distribu-
tion reservoir visually represents water and health, as in “Yuanbao.”)
Courtesy: STSP
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• OPTOLINK International Edition 2009 Q4
INDUSTRY NEWS
Ta i wa n,
being the most
powerful LED
manuf a c t ur i ng
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
bet ween l ocal and gl obal LED
manufacturers, and how this synergy
A
c c or d i ng t o PI DA’ 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 busi ness
opportunities.
Th i s y e a r, t h e
s how or g a ni z e r PI DA
has launched a global marketing
initiative to boost the visibility of
this exposition. PIDA is going to
arrange ofcial 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 t he
cooperation between local and global
LED industry. PIDA also cooperates
LED Lighting Taiwan 2010 :
A Greener Taiwan
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• 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 our na l , L a s e r Fo c us Wor 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
Taiwan's Policies to Go "GREEN¨
All incandescent light bulbs installed in
governmental buildings are to be replaced
with energy-saving light bulbs within a year
Retailers will be required to phase
out sales of incandescent light bulbs
within four years.
Within three years, all of the
country's traffic lights would use
light-emitting diodes (LEDs)












Taiwan's Taiwan's
cabinet has cabinet has
passed a passed a
motion calling motion calling
for $1 billion for $1 billion
investment in investment in
" "green energy green energy¨ ¨
technology. technology.
Ìncandescent Ìncandescent
lamps will be lamps will be
gradually gradually
phased out phased out
from 2010 and from 2010 and
totally banned totally banned
since 2012. since 2012.
LED lamps LED lamps
already used in already used in
traffic signs traffic signs
Source: The Executive Yuan, Taiwan
. .
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EXHIBITION WATCH
LEDs in Prosperity
Special Report
on
LED
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 t hat of 1990 mi nus 52%
during 2008 to 2012. To reach this
T
he 2-day-run LED Japan
Conference & Expo was
held during September
16
th
to 17
th
, co-organized
by ICS Conventi on Desi gn and
PennWell. Te venue of the exhibition
moved to Pacifico Yokohama Hall
from Tokyo this year for an expanding
scale of the show.
As an i sl and t ype count r y,
Japan is relatively limited for the
nat ural 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
30
• OPTOLINK International Edition 2009 Q4
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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 efciency of 82 lm/W, as fgure 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 pl ayers 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 charged by s ol ar
energy and is used in
performing purpose,
warning sign, guidance
and decoration (figure
2).
AXIA on the other
hand exhi bited 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 •
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OPTOLINK 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 fsh luring.
AXIX launched a special LED
product t hat combi nes mi rror
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 diferent 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 confdent with their
product since both LED and solar
energy are highly potential in green
energy industry.
LED Niche Market
Diversifes
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. Tis 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.
The Korea- bas ed company
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.
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• OPTOLINK International Edition 2009 Q3
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 diversifcation
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 trafc 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
T
his 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
OPTOLINK International Edition 2009 Q4 •
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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 fuorescent light (CFL) bulbs introduction,”
said Dr. Wu.
In addition to LED standards, Dr. Wu also shares
his thoughts on China market. Te LED industry in
China is taking of 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 diferent story. LED has a
wide range of application, each of which has its way
of package to reach best lighting efciency. 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 efciency,”
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
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• OPTOLINK International Edition 2009 Q4
COMPANY PROFILE
to bridge the gap between high bright, low power and
high lumens, high power LEDs, providing signifcant
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 fnancial
Everlight Prepares for the
Future with LED Lighting
“T
he two maj or goal s 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 afordable.
In the report, the replacement market will be
taking of soon because of legislation banned inefcient
lamps, plus customer awareness of energy saving and
carbon reduction. Te 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
efcient. 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. Te 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
OPTOLINK International Edition 2009 Q4 •
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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 fat 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.
Te 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. Te 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
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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
“E
xplosive 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 fne-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
Courtesy: PIDA, 2009/12
OPTOLINK International Edition 2009 Q4 •
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COMPANY PROFILE
is to grow from about 3% in 2009 to more than 30%
in 2011 and should surpass CCFL backlights in fve
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
of in the near future due to a short supply of metal-
organic chemical vapor deposition (MOCVD)
reactor that hampers LED supply.
Tere 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
fnancial 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 bol d 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
“T
o 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 qualifed 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 shif 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 lef 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
efciency, 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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• OPTOLINK International Edition 2009 Q4
COMPANY PROFILE
company in SMD LED, and Dr. Wang is also the one
who knows best about PCB in Taiwan LED industry.
Te bold decisions he made to leave sea for working
as a night shif 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 frst 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 frst 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.
COMPANY PROFILE
Source: Harvatek
Fig.2 Harvatek is the frst company in Taiwan to manufacture surface mount device (SMD) LED
OPTOLINK International Edition 2009 Q4 •
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COMPANY PROFILE
Unity Opto:
Always Looking Ahead
A
ccording 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. Te 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 fnally decided to take
a leap into LCD backlighting based on the confdence
to its R&D capability.
Winning strategy
When asked about how to build the core
competency of Unity Opto, Wu commented
a common phenomenon f or Tai wan LED
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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• OPTOLINK International Edition 2009 Q4
COMPANY PROFILE
manufacturers: everyone is looking for what seems to
be proftable and rushes to do the same thing. In the
end, no one really gets proft 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 specifc to its strength and customers
tailored in development of application so it does not
have to compete with rivals fercely 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 specifcations 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 shif our products
having gross proft 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. Terefore, Unity Opto
has regarded “change is the only unchanged principle”.
Wu stresses on market-driven R&D eforts. He works
closely with customers to keep up with the market
demand in real time and to fnd new application feld
which no one sees before. Presently Unity Opto has
Fig.2 Unity Opto explores the China LED street lamp market
Courtesy: Unity Opto
OPTOLINK International Edition 2009 Q4 •
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COMPANY PROFILE COMPANY PROFILE
been promoting indoor lighting products, as Wu
stated, “Tis is a promising market two to three years
from now.”
Riding with the success of LED
Backlight
Unity Opto’s invested eforts 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 proft 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 confdence 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
S
eoul Semiconductor is one of the world’s
leading manufacturers in LED industry, and
is the frst company that put R&D efort 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
frst 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 fuorescent 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
OPTOLINK International Edition 2009 Q4 •
47
COMPANY PROFILE
OPTOLINK International Edition 2009 Q4 •
47
Item Acriche A4 DC LED
Source Luminous Effcacy (lm/W) 75 80
Electric Power Source
Effciency (%)
90 70
Directional Fixture Effciency (%) 90 90
Actual System Luminous
Effcacy (lm/w)
60.8 50.4
Power Consumption(W)
(500 lm benchmark)
8.2 9.9
CO
2
(kg)
(8hrs/day)
10,464
12,633 + α
(α: drive circuit CO
2
)
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 insufcient 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
benefts 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
confdential 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?
Te 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
Courtesy: Seoul Semiconductor
48
• OPTOLINK International Edition 2009 Q4
COMPANY PROFILE
A4 a nd
other general DC
LED. It is demonstrated that
Acriche A4 is more excellent with regard to the actual
efciency 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
pol luti on probl ems are bei ng 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 effciency
Courtesy: Seoul Semiconductor
OPTOLINK International Edition 2009 Q4 •
49
COMPANY PROFILE

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