As we know that Asia is the production core of the global LED industry. Based on LEDinside's survey, Japan ranked No. 1 in LED package revenue by region, accounting for 29% in market share.
In the long history of the LED industry in Japan, the invention of blue LED by Shuji Nakamura was the turning point, which contributed to a rapid development of LED industry in Japan. Japan LED industry has been in an advantageous position due to its intergrated supply chain. Besides several major LED manufacturers, up, mid, downstream material manufacturers in Japan play a critical role in the global supply chain, providing materials such as phosphor, silicone lens and sapphire ingot. Major LED manufacturers are mostly located in Kansai area of Japan and material manufacturers are mostly in Kanto area.
According to LEDinside's observation, the earthquake generally has not done much damage to LED industry. As for some manufacturers located in Kanto area, the situation was optimistic – plant and equipment remained unharmed. Due to the shutdown of Fukushima’s power generator and transport difficulties caused by tsunami in certain areas, there has been short supply regarding some components and materials.
LED Manufacturers
Major LED manufacturers in Japan such as Nichia and Toyoda Gosei are both located in Kansai area, so the earthquake did not do much damage to them. Some of Showa Denko’s production lines are in Chiba, where electrical brownouts are currently enforced. Therefore, it will inevitably affect Showa Denko’s capacity. As for LED packaging manufacturer Citizen, because some of its production lines are in Fukushima, the damage is yet to be fully estimated.
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