Yesterday, LED stocks such as Cree Inc (CREE), Aixtron (AIXG) and Veeco Instruments (VECO) got a boost when the head of GE’s lighting unit Michael Petras said in a Bloomberg article that he anticipates LED lighting could account for as much as 75% of their sales in the unit within the next 10 years (compared with just 10% now).

Demand for LED will began to surge very soon due to the phasing out of the incandescent bulb in the US in 2012 and plummeting prices.

“The war to sell us chips happens every day,” said Petras, 43. “People are calling us up wanting to sell us more chips at lower prices. We see a significant erosion in chip prices year-over-year.”

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GE currently produces LED spotlights and floodlights but will introduce the first household LED bulb next month which is designed to replace a 40 watt incandescent bulb.  The bulb has a life span of 22 years and uses less than a quarter of the energy.  It’s expected to sell for about $50 which is beginning to get to a price point where the average consumer may take notice, especially when you  factor in the energy savings.

Back in June, GE Lighting signed a licensing agreement with Rambus (RMBS) to use their product designs for manufacturing LED lighting systems for use in architectural and commercial applications.