Taiwan’s top two LED makers Everlight and Epistar are both concerned about the loss of Taiwan’s LED Industry No.2 rank.

Both of the two makers,believe that Taiwan is likely to be unseated by South Korea this year based on the lack of government incentives to consumers of LED lamps.

Y.F. Yeh, chairman of Everlight, pointed out that mainland China and South Korea are poised to surpass Taiwan in LED production as a result of government subsidy to LED-lighting consumers.

He noted that Taiwan’s LED industry has developed for nearly 30 years and snatched up to 20% of the world market. However, the leading position will be likely taken over by South Korea, whose LED industry is estimated to see market share rise to 23% this year from 14% in 2009. As a result, he called on the Taiwan government to offer incentives as quickly as possible.

For B.J. Lee, chairman of Epistar, if Taiwan government fails to offer incentives to the consumers, Taiwan will eventually depend on foreign suppliers for the lamps, thereby eating into the island’s LED industry.