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LED Market Remains Unsettled
Equipment Spending Forecast to Decline in 2012
Boston, MA - March 28, 2012 – After two years of explosive revenue growth, the LED market appears to be slowing down in 2012. The Strategy Analytics GaAs and Compound Semiconductor Technologies Service (GaAs) viewpoint, “Compound Semiconductor Industry Review January 2012: Optoelectronics, Materials and Equipment” highlights news that equipment spending and epitaxial substrate demand in the LED sector will decline in 2012. This validates recent announcements from equipment manufacturers, like AIXTON, that substantial funding from Asian governments has been masking inherent softness in LED demand. The report also captures announcements for companies such as Soitec, Sumitomo Electric, AXT, IQE, Oclaro, Cree, Renesas Electronics, GigOptix, Avago Technologies, JDSU, Lumileds and First Solar.
“The LED industry has grown in cycles,” observed Eric Higham, Director of the Strategy Analytics GaAs and Compound Semiconductor Technologies Service. “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”.
Asif Anwar, Director, Strategy Analytics Strategic Technologies Practice added, “Despite a slowdown in demand, companies are hard at work developing products that improve the performance and cost of devices in preparation for the next wave of LED adoption .”
This Strategy Analytics viewpoint 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.
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