Demand for LED televisions will continue to put pressure on the supply of LED chips for the rest of 2009, according to LEDinside.
Higher-end chip makers have begun shifting their capacity to the mid-power chips according to the research, squeezing the output of high-power chips and causing them to remain stable.
In the lighting market, the number of LED packaging and application manufacturers has seen a steady rise in mainland China, leading to increased demand since the first quarter of the year.
Regarding mobile phones and other handheld applications, the market analyst noted that screens smaller than 3.2 inches are still using between four and six LEDs due to customer preference for brightness and uniformity of light.
Finally, LEDinside claimed that the launch of OSRAM Opto's 100Lm/W products in its Golden Dragon series has put downward pressure on the price of high-power LEDs.
The firm recently reported that South Korea plans to spend 107 trillion won (£52.2 billion) on green industries over the next five years, including smart power grids and LED street lighting.