Light-emitting diodes are like other diodes, in that they are formed by a semiconductor PN junction. The semiconductor material of the junction is what sets the voltage required to forward-bias it. For example, germanium diodes are forward biased at 0.3v and silicon diodes at 0.7v. That's what sets the operating voltage of a silicon of germanuium transistor too.Light-emitting diodes use different semicondutor junctions to provide different colors, and each has a different forward-voltage requirement, usually between 1 and 4 volts. The typical red LED requires about 1.7 volts. Semiconductor junctions that provide higher frequency colors require higher forward voltage bias.