Taiwan Ministry of Economic Affairs (MOEA) has estimated that the output of the island’s LED streetlight manufacturing sector is expected to reach as much as NT$34 billion (US$1.15 billion) by 2018.

According to an assessment released by the MOEA's Bureau of Energy, since the start of 2012, the government has been pushing for the installation of LED street lights to help the LED sector build a supply chain and create clusters of manufacturers. Under the projects, the government is expected to spend about NT$2.8 billion to install more than 326,000 LED street lights around the island.

The production value of the local LED lighting sector in 2011 jumped to NT$186.7 billion from NT$93.9 billion in 2009, the bureau said. And based on the government's efforts, the production value of the LED streetlight sector is expected to account for 20 percent of the global total by 2018.

Globally, the output of the LED lighting sector for 2012 is expected to rise 23 percent from 2011 to US$39 billion (NT$1.15 trillion) on the back of demand, which will be boosted by more affordable products.

The bureau said the fast growing LED lighting sector has encouraged many local investors to pour in massive funds. For example, Formosa Plastics Group is planning to set up the world's first automatic LED lighting production line, which is scheduled to become operational in June. And Taiwan-based Leadray Energy Co. launched an LED lighting production base in Miaoli County on March 23.in addition, several other local high tech heavyweights, such as Taiwan Semiconductor Manufacturing Co. and Hon Hai Precision Industry Co., also have entered the LED business.