High-level executives from US-based LED company Bridgelux recently visited Asian markets including China, Hong Kong and Taiwan to meet with clients. It has set up sales offices in both Shanghai and Shenzhen and participated in government-sponsored street lighting programs via its clients. Depending on market conditions, the company is looking to increase its efforts in China's sales channels.

Bridgelux, which began as a LED chip maker, launched LED lighting modules in 2010 and is currently focused on the high-power LED lighting market in 2011. Some industry observers even consider Bridgelux as fellow US-based lighting player Cree's biggest competitor.

Although Bridgelux has its own LED chip production and packaging facilities in the US, the company also sources from Taiwan-based LED chip maker Epistar and a Malaysian chip packager for cost management purposes. Since Bridgelux is very bullish on the LED lighting market in 2011 and 2012, it plans to commit more technological resources in Asia, according to the company.

Europe, the US and Asia each represent roughly a third of the company's revenues, and China alone constitutes half of its Asia sales.

With aggressive capacity expansion, Bridgelux noted that an LED oversupply could put great pressure on pricing. Hence becoming more cost and price competitive is critical in developing the high growth LED lighting market. Bridgelux pointed out that its second-generation LED lighting products are 30% more efficient and 50% cheaper than those of the first generation. In about two years, LED lighting product pricing will reach a level acceptable to most consumers.

LED light bulbs in the US will fall to US$15 in 2011 from US$40 in 2010, the company said, adding that under US$10 is not far away.