SAN FRANCISCOThe light-emitting diode (LED) market is expected to be a rare bright spotno pun intendedin what is forecast to be an otherwise dismal year for the semiconductor industry in 2009, according to market research firm iSuppli Corp.
Aided by rising demand from LCD-TV makers, revenue from LEDs is expected to increase by 2.9 percent in 2009, following 10.8 percent growth in 2008. In contrast, the overall semiconductor market is set to decline by 9.4 percent in 2009, according to iSuppli's latest forecast.
"LEDs are forecast for growth this yeara highly unusual item in our semiconductor forecast, given that almost all other components will suffer revenue contractions in 2009," said Dale Ford, senior vice president, market intelligence services, for iSuppli, in a statement. Ford added that of 12 major semiconductor categories tracked by iSuppli, nine are expected to suffer revenue declines for the year.
"Although a 2.9 percent increase is only a moderate rise by the standards of the semiconductor industry, any revenue growth at all this year will be a remarkable accomplishment," Ford said.
Click on image to enlarge.
The LCD-TV market in 2009 will consume $163 million worth of LEDs, up 221.9 percent from $51 million in 2008, according to iSuppli (El Seguno, Calif.). By 2012, LCD-TV LED revenue will grow to $1.4 billion, nearly nine times its 2009 value, according to the firm's latest predictions.
LEDs are used in LCD TVs to illuminate the display. Declines in prices and newer higher-brightness LEDs are enabling their usage as backlights in LCD TVs, iSuppli said.