China-based First O-Lite, which was established in 2010, has recently announced the world's third 2.5G OLED lighting plant will ramp up production in 2012, according to industry sources.

First O-Lite line has invested CNY980 million (US$155 million) constructing the OLED line, which has already started trial run, the sources said.

High production costs have been the main reason limiting the growth of OLED lighting. Nevertheless, many Japan-based firms such as Panasonic, Kaneka, and Konica Minolta have announced the beginning of production for OLED products. Philips has also indicated a plan to invest EUR40 million (US$53 million) to set up OLED lighting production lines in Germany. South Korea-based LG also plans to produce large-size OLED lighting panels.

Other industry leading firms such as GE, Sharp, Toshiba, NEC, and Hitachi have been betting on OLED products. Industry sources believe OLED will be leading the next wave of lighting evolution starting at 2012.

Taiwan-based firms have been reluctant to invest in the development of OLED panels or lightings. Industry sources noted that Taiwan-based firms hope to see market differentiation between LED and OLED lighting before making investments. Market observers also believe the technology for making large-size OLED panels will become mature in 2015.

In contrast to international firms' aggressiveness in investing and improving the technology of OLED products, Taiwan-based firms have been conservative.