Light-emitting diodes (LEDs) are rapidly gaining in popularity for a number of uses, including automobile applications, thanks to a number of advantages over traditional incandescent lighting sources.

New cars, especially luxury models (BMWs, Mercedes-Benz, Audi, etc.), are being fitted with an increasing number of LEDs as tail lights and signal lights in addition to the earliest application as third-brake lights.

LEDs are also playing an increasingly important role as accessories, from lighted windshield-wiper nozzles, side lights, color-changing dashboards, flashing gearshift knobs, and light rings around tailpipes.

Local LED makers say that auto applications have become the major force in boosting LED sales in recent years (following their use in cellphones), and some predict that the global market for auto-application LEDs will reach at least NT$70 billion (US$2 billion at NT$34.6:US$1) per year--and may top NT$100 billion (US$2.9 billion)--within the next few years. In the third-brake light segment alone, they say, the market is expected to grow to NT$16.4 billion (US$474 million) in 2007, up from just NT$8.2 billion (US$237 million) in 2001.

Chang Chin-yi, a spokesman for Unity Opto Technology Co., a leading supplier of auto-use LEDs, says that these products are poised to unseat conventional lightbulbs as the mainstream lighting source in auto applications. He claims that today about 850 LEDs, including those that emit both visible and invisible light, are already used for illumination and other purposes (such as remote-control displays) in each car made.

Among the many advantages that LEDs enjoy over conventional lights, Chang explains, are at least 10 times the durability, just one-fifth the power consumption, a response time that is 330,000 times faster, and cooler, safer operation.

Almost all car makers in the world are now using LEDs as their third-brake lights, Chang notes, adding that a growing number of cars are being fitted with LEDs for tail lights and signal lights as well. His company reports that many orders have been coming in from big carmakers in the United States and Europe (including GM, Chrysler, and Toyota) for LEDs to be used as brake and tail lights.


Unusual Certification


The company expects to soon receive one large order from an European customer with certification arrangements that are rather unusual. Because of the SARS outbreak, the Taiwan plant will be certified by the European buyer via a remote video link instead of on-site inspection.

Unity is also expected to win an order soon for 1.3 million IrDA LED models to be used in remote-control devices by Mercedes-Benz of Germany. IrDA, or the Infrared Data Association, is an industry-sponsored association set up in 1993 to create international hardware and software standards for infrared-communication links.



The company expects auto-use LED products to generate revenues of about NT$500 million (US$14.4 million) for it during the next year. For all LEDs, the company predicts that its monthly revenues will reach NT$300 million (US$8.65 million) in the second half of the year, double the current figure.

In addition, Unity is pursuing a number of important opportunities involving auto-use LEDs in mainland China--the fastest-growing auto market in the world.

Huang Kuo-hsin, chairman of United Epitaxy Co., another of Taiwan's major LED makers, recently predicted that global demand for auto-application LEDs would reach NT$175 billion (US$5 billion) annually within the next few years. To take advantage of the opportunities presented by this situation, United Epitaxy plans to set up strategic alliances with local auto-parts makers.

The chairman is optimistic about his company's prospects because, as he points out, each cellphone uses an average of 20 to 30 LEDs and each car has 300 to 800. With around 57 million new cars being manufactured every year, this represents a deep market for LED makers.