Tapping the full Potential of Vertical High Brightness LEDs
Our management team perceptively steered the Group towards tapping the growing demand of the high brightness LED wafer market back in 2007 by acquiring share capital in Wavesquare Inc. (“Wavesquare”), a Korean-based company engaged in the research, development and manufacture of blue high brightness LED chips. Wavesquare develops vertical high brightness LED chips with luminosity and other physical properties that are compatible with other producers but at a lower cost. Unlike the general horizontal LED chips, there are only a few manufacturers in the world supplying vertical high brightness blue LED chips. In 2010, Wavesquare garnered the Minister of Knowledge and Economy Award at the first National Green Tech Awards presented by the Korean Government. The aim of the Awards is to encourage and honor electronics companies to develop green technology and Wavesquare is the only LED vendor to be cited, highlighting its prowess and underscoring the potential of the technology. Wavesquare is able to produce high brightness LED chip with technology that does not involve using substances such as mercury or lead that pollute the environment.
Wavesquare Milestones and Awards
Competitive Advantage over other LED manufacturing techniques
Being the single largest shareholder with a 26.9% stake in Wavesquare, the Group is the sole distributor of all of Wavesquare’s products in Mainland China, as well as Hong Kong, Macau and Taiwan with an emphasis on the high brightness LED applications such as LED 3D TV backlighting and general lighting. According to industry consultant Digitimes, the global high brightness LED market is expected to achieve a CAGR of 38.4% between 2010 and 2013 and the overall value of the market will increase from US$5 billion to US$21.9 billion. Energy demand is growing in parallel with population growth and economic expansion, in order to reduce energy consumptions and carbon emissions, governments have launched different policies to discourage or eliminate the use of traditional incandescent light bulb. LED lighting is expected to have huge boom in the coming years and reach a globe penetration rate of 75% in 2020 (2010: 3.2%). The market demand for LED for backlight modules of LCD displays, including TVs, is exhibiting the fastest growth in the high brightness LED segment. The Group is confident in its long-term business development and growth and is expecting a high increase in revenue driven by Wavesquare.
HB LED Market Forecast 2010-2013
Governments’ policies on LED lighting
Becoming the Sole Supplier of LED wafer to Wavesquare
To further strengthen the position in Vertical High Brightness LED market, the Group has invested the additional capital in upstream development of the LED business through setting up a factory in Korea to engage in manufacturing LED wafers in late 2010. Upon completion of the factory in 2011, the Group will be the sole supplier of LED wafers to Wavesquare.
Vertical High Brightness LED Total Solution Provider
For more information, please visit www.wavesquare.com