A single LED emitting light on a magnified six-inch silicon wafer.

A new technique developed in Cambridge that paves the way for manufacturing affordable light-emitting diode (LED) lightbulbs is to be exploited in the UK.

Researchers say the deal could have a dramatic impact on carbon emissions.

The process, developed at the University of Cambridge, will be used by semiconductor manufacturer Plessey, based in Plymouth.

It involves growing gallium nitride crystals on silicon and could drastically reduce the cost of making LEDs for lighting in offices and homes.

LEDs are the small, coloured lights currently used in electronic equipment, bicycle lights and roadside signs.

Many scientists see them as the ideal replacement for old-fashioned tungsten filament lightbulbs, which are being phased out by the European Union because of the amount of electricity they waste and the impact on carbon emissions.

Researchers estimate that a worldwide switch to LEDs, which are far more energy efficient, would enable the closure of 560 power plants and result in annual CO2 savings equivalent to the output of all the cars on the planet.

Professor Sir Colin Humphreys, who is leading the university team, said: “LED lightbulbs currently cost as much as £40 but we expect to be able to reduce that cost by a factor of five by growing on silicon.

“Mass manufacturing may reduce the cost further. Eventually I think that we will see LED lighting being fitted throughout the world.”