The LED lighting industry is blooming in 2011 due to the government and the growing demand for energy efficient products. And the cost of high-power LED light sources may decrease to NT$10 (US$0.35) per 100 lm/W in late 2011, comparing to NT$20 currently, which may improve the growth of LED market.

The biggest part of the costs is no longer the chips, but radiators and drives which form about 2/3 of the total cost for LED lightings. T he decrease in price will likely to occur in the third quarter, according to Jason Wu, chairman of Edison Opto,

In order to lower costs, Wu added, the TEMO (thermal management, electrical scheme, mechanical refinement, and optical optimization) integration must be achieved. The cost of LED down light cannot be broken down in parts, it has to be examined in whole, Wu pointed out.

The prospect for LED lighting has been questionable recently for April revenues are flat compared with March revenues. However, as the second quarter is the traditional boom season, both revenues and gross margin are expected to outperform the first quarter, according to Edison. Targets announced in the investors conference at the beginning of 2011 will hopefully remain, stated Edison.
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