Industry Analysis & Industry Trends
Seeing the light
The LED Manufacturing industry's performance has remained strong, with businesses purchasing more LEDs in order to save on rising energy expenses and invest in products that typically last longer than traditional lighting goods. Revenue growth will continue as firms concentrate on creating LEDs that can be used as substitutes for traditional lighting while keeping final prices down. Still, growing competition from LEDs that are produced abroad will hamper revenue growth prospects and place pressure on profit margins.... purchase to read more
Industry Report - Industry Investment Chapter
Industry capital intensity is high due to the significant amount of capital needed to produce LEDs. The average industry firm spends about $0.71 on capital equipment for every dollar it spends on labor. Wafer foundries, etching equipment and clean-room production environments are very expensive to maintain and require regular replacement or upgrades. Because the rate of technological change within the industry is high and increasing, significant investment in capital items is expected to continue.
A typical new LED manufacturing facility costs at least $3.0 billion and requires additional billions of dollars of investment in new equipment over the life of the facility. US LED manufacturers typically invest about 30.0% of their total annual revenue in the future, 20.0% o... purchase to read more