Michael Kanellos 11 24 09, 12:58 PM

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iWatt Says it Can Cut Costs in LEDs, Is It Merger Bait?

LEDs are coming, and iWatt says it can make them a little cheaper.

The company has devised a driver for LEDs that effectively lets a manufacturer eliminate another component called an opto-coupler. Reducing components reduces prices. Bridgelux, a larger and better known LED company, is already marching down the that path. Bridgelux came out with a packaging system earlier this year that ultimately lead to LED bulbs that cost $26 dollars in the not too distant future. It is not clear if iWatt can have the same level of impact. It's part costs 98 cents in quantities of 1,000. Another open question: will iWatt be able to survive the notoriously difficult market for semiconductors or will they get out-competed by established companies hawking the same thing? Far fewer chip start-ups make it out of the early stages than they used to.

Still, any price cut in LEDs helps.

Both companies, interestingly, have received investments from VantagePoint Venture Partners, which tends to pair investments. The firm also has investments in Tendril (home energy  management) and Adura Technologies (commercial building energy management.) Shotgun wedding anyone? Just a thought.

Although LEDs only represent a fraction of the market, they will likely come on strong in the next decade. Australia, Canada, the EU, the U.S. and others are phasing out incandescent bulbs. LEDs are also improving in quality and the price is declining.

The component, by the way, operates in quasi-resonant mode and employs adaptive gate drive control, in case you were wondering.