There is no shortage of emerging competition in LED lighting. Capacity is rising, prices are falling and some of the world’s biggest chipmakers appear ready to do battle.
This week LED kahuna Cree promised to spend $135 million expanding production at its North Carolina fab. It earmarked another $392 million for a new facility in the state and is said to be considering facilities in the low-cost labor markets of China and Malaysia.

Inside Bridgelux's new Silicon Valley fab
General Electric is ramping up its own production, as is Samsung, LG Electronics, Philips and Osram. In China, about 55 producers are pumping money (some of its state funds) into their own plants.
Even India wants to get in on the act. De Core Science and Technologies is said to be gearing up for LED production at as many as two locations
Don’t forget Bridgelux, a promising U.S. producer that on Monday showed off a Silicon Valley fab where it has big plans for expansion. The company has the capacity to make 5,000 wafers a month and hopes to expand that five fold. About 180 new workers are expected by next year.
The growth should enable Bridgelux to more than double revenue next year from this year’s $30 million, says CEO Bill Watkins.
The industry’s expansion has an obvious motivation. Some estimates suggest a $19 billion worldwide market for LED lighting by 2014. There is big money to be made.
But with the steady expansion around the world, the danger of over capacity and commoditization rises as well.

Clean-room workers in the Bridgelux plant
The excitement of a massive LED market has attracted growing enthusiasm from venture capitalists. Money has poured into companies across the market spectrum, from software makers to hardware designers, including Luminus Devices, Superbulbs, Terralux, Digital Lumens, Albeo, LEDEngin. Bridgelux itself has raised $113.5 million.
There will be more to come.