iSuppli: LEDs will outperform overall chip industry
By James Carbone -- Purchasing, 2/12/2009 2:00:00 AM
Light-emitting diodes (LEDs) will be one of the few bright spots for the semiconductor industry this year. While the overall semiconductor market is expected to drop by about 10%, LED revenue will rise about 3% in 2009, according to a new report from researcher iSuppli.
LED revenue will rise from $7.1 billion in 2008 to $7.3 billion in 2009 after growing 10% in 2008. LEDs are being used more in everything from architectural lighting to traffic lights. Many are used as backlights for liquid crystal display (LCD) computer monitors and notebook screens.
They are increasingly being used as backlights for LCD televisions. About $163 million of LEDs will ship to the LCD-TV industry in 2009, up from $51 million in 2008. By 2012, however, about $1.4 billion of LCD will be shipped to LCD-TV manufacturers.
LEDs are used in LCD TVs to illuminate the display. LCDs are a "transmissive" display, meaning they do not generate their own light and need a separate illumination source, or backlight. LCD displays have used cold-cathode fluorescent lamps (CCFLs), but LED prices have fallen where they are cost competitive to CCFLs. LEDs use less electricity than CCFLs and enable thinner TV sets because of their smaller size.
A majority of LED backlit LCD TVs comply with Energy Star requirements, which is attractive to consumers because it is viewed as a guarantee of reduced energy costs, according to iSuppli
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