A number of Taiwan-based LED chipmakers and packaging companies are strengthening their deployments in the LED lighting segment as the market is expected to grow over 50% in 2011, according to industry sources.

Epistar estimated that the ratio of LED lighting products to its total production will increase to 30% in 2011 from 20% in 2010, while fellow companies Tekcore and Formosa Epitaxy both are expected to ramp up ratios to 30% in the fourth quarter of 2010.

Sales of LED light products will account for only 5-6% of Everlight Electronics's total revenues in 2010 as the company has focused on LED backlight applications. Everlight expects the LED lighting business to reach NT$1.5 billion (US$49.78 million) in 2011, accounting for 10% of total sales.

Meanwhile, LED packaging company Unity Opto Technology looks to expand sales of its LED lighting products to NT$2-2.5 billion in 2011 compared to NT$1-1.1 billion projected for 2010, as fellow company Edison Opto is focusing on high-power LED lighting products to maintain its gross margins at around 30%.