For the first time in five years, investment in LED manufacturing is expected to decline 18% this year, after a 36% rise last year, says SEMI, but against a background of general decline, spending in Taiwan and Korea is expected to continue to grow.
Although demand for LEDs used lighting continued to grow last year reaching a $2.5bn market, demand for LEDs used in backlighting TVs- representing 40% of the LED market - has not met expectations.
However LEDs used in lighting are expected to be a $30bn market in 2020.
Worldwide LED manufacturing capacity is expected to reach two million wafers in 2012 (4" equivalent per month), a 27% increase over 2011.
Spending for non-MOCVD equipment, however, particularly in lithography, etch, test and packaging equipment will increase in 2012, as manufacturers optimize their production lines and improve their product designs.
"Similar to other microelectronics industries, LED manufacturing capacity and technology investments will vary year-over-year, but will correspond with the long-term demand driven by key applications; in LEDs, this will be primarily solid state lighting," says SEMI’s Tom Morrow.
"Future equipment and capital spending will drive LED cost reduction through larger wafers, automation and dedicated equipment specifically designed to improve to LED manufacturing yield and throughput," says Morrow.
