Philips, the market leader has been the first casualty as the profit margin on the individual LEDs is eroded because of overproduction in China. The achievement in price declines because of economies of scale, and general competitive pressure have drastically impacted the market. Philips is set to sell its lighting business. The Dutch electronics group Philips has attracted bids from several private equity groups for the majority of its lighting components business, up for sale as it focuses on higher-margin activities.
http://www.youtube.com/watch?v=4bhaAnMXIjI
http://www.youtube.com/watch?v=D680dbUcnR4
Epistar is working on 200mm technology. Philips, OSRAM, and Samsung are all actively exploring GaN on silicon technology. Market shifts provide entry points for new competitors. They create significant opportunities for participants to achieve rapid increase in market share. Shifts in market share are anticipated as vendors move up the value chain to increase returns on investment.