March 29, 2012 — Light emitting diode (LED) revenues are slowing down in 2012, after two years of remarkable growth, according to Strategy Analytics. LED fab equipment spending and epitaxial substrate demand in the LED sector will decline in 2012.
Equipment manufacturers like AIXTON have recently reported that inherent softness in LED demand was being masked by substantial funding from Asian governments. Despite the demand weakness, the industry is developing new products with an eye on higher-performance and lower-cost LEDs, said Asif Anwar, director, Strategy Analytics Strategic Technologies Practice. The industry is preparing for "the next wave of LED adoption."
This wave appears to be commercial and residential LED lighting, said Eric Higham, director of the Strategy Analytics GaAs and Compound Semiconductor Technologies Service, who notes that the LED industry grows in cycles. “The first phase involved backlighting for small consumer devices, like mobile handsets. These solutions have evolved to meet the needs of laptop, television, electronic sign and automotive applications and the next wave for LED adoption appears to be commercial and residential lighting.”
The Strategy Analytics viewpoint, "Compound Semiconductor Industry Review January 2012: Optoelectronics, Materials & Equipment," summarizes financial, product, contract and employment announcements from major optoelectronic material, device and equipment suppliers in January 2012, categorizing by material and equipment, laser, LED and compound photovoltaic activity. The report captures announcements for companies such as AIXTRON, Soitec, Sumitomo Electric, AXT, IQE, Oclaro, Cree, Renesas Electronics, GigOptix, Avago Technologies, JDSU, Lumileds and First Solar. Access the report at http://www.strategyanalytics.com/default.aspx?mod=ReportAbstractViewer&a0=7210