Driven by globalization, competition within the LED industry is growing fiercer. Market dominance by any single player is now unthinkable. In this new landscape, leading LED manufacturers will more likely engage in patent lawsuits or other offensive strategies.
Chinese and Taiwanese LED makers have recently seen rapid growth due to their exposure to the huge mainland Chinese market, but they lack a strong patent portfolio. When these companies seek to expand overseas, their international competitors may declare all-out patent war to kill their efforts.
As the LED industry continues to oversupply globally, some anticipate industry-wide restructuring will accelerate. With more than a few small Chinese LED companies declaring bankruptcy already, and with continuing mergers and acquisitions, the expert view predicting that the supplier side will reorganize into several giants with a strong patent portfolio has gained quite a following. A harsh payback may be coming for those market players who disrupted the industry, breaking patent regulations and using high-volume/low-cost strategies instead.