Prices for a 7W LED light bulb are likely to drop to US$8-10 in 2012, less than 20% higher than current prices for a 40W incandescent bulb, according to chairman Liao Zongren for Taiwan-based LED packaging house Bright Led Electronics.

Bright Led has begun shipments of 7W LED light bulbs at US$8-10 in small volumes, but low gross margins render it necessary to reduce production costs, Liao indicated. Bright Led expects the global market of LED indoor lighting to take off as early as the fourth quarter of 2011, Liao said.

While growth in the China market for LED street lamps has slowed, Bright Led has landed orders for 50,000 LED street lamps from local governments in Inner Mongolia and has begun shipments, Liao indicated. Bright Led expects to ship 16,000-17,000 LED street lamps in 2011.

In addition to LED lighting, Bright Led has become a supplier of LED backlight units (BLUs) for China-based LCD TV vendors including Changhong, Konka, TCL and Skyworth, with shipments accounting for 5-10% of its total revenues, Liao said. In anticipation for peak sales during the October 1-7 vacation in China, these LCD TV vendors have placed orders for LED BLUs with shipments to concentrate in August-September, Liao revealed.

For 2011, Bright Led aims to maintain overall gross margin at 15-20%, as in 2010, rather than pursue revenue growth, Liao indicated.