Taiwan government has announced the island’s electricity rates for the manufacturing industry will be hiked by 35% starting from May 15, the rates for commercial sites will be raised by 30% and rates for households will increased by 11%.

To counter the upcoming implementation of new electricity rates, Taiwan’s enterprises are increasing installations of LED lamps. As a result, the island’s LED industry will benefit a lot.

The lighting manufacturers including Delta Electronics, Everlight, Edison Opto Corp., Lextar Electronics Corp. have landed considerable orders from the island’s manufacturers, prompting them to increase orders to LED chipmakers.

According to industry executives, Everlight and Delta LED lamps are already out of stock at several hyper marts on the island while Edison, Lextar and Unity Opto Technology Co., Ltd have received millions of NT dollars of contracts for LED light tubes from enterprises.

Everlight has snatched up over 50% of local market for branded LED light bulbs.

Unity Opto Chairman Alpha Wu pointed out that the orders have kept swarming into his company after the government announced the power rate hikes, and this week alone, the company landed an NT$30 million order for 50,000 LED light tubes. He said such heavyweight buyers are lining up for the lamps.

Additionally, Strong market has driven up capacity utilization rate at chipmakers including Epistar and Formosa Epitaxy Inc.