LEDinside: LED Perspective from Jason Wu, Chairman of Edison Opto

Aiming to become the leader of Taiwan’s LED lighting industry, Edison Opto has been committed to high power LED development over ten years. It has not only founded an LED component brand but also proposed Lighting Design Manufacturing Service (LDMS), the first integrated lighting service program of its kind in the industry to provide customers a series of lighting solutions. Besides, it has a unique insight into the channel management. LEDinside had the honor to invite Mr. Jason Wu, chairman of Edison Opto to talk about its product planning and channel strategy.

Lighting Market Outlook: LED Lighting Solutions will Turn Module-based Along with LED Lighting Popularization between 2011 and 2012

It takes approximately ten years from high power LED researches to the development of the entire lighting industry. The conditions for massive popularization of LED lighting have become more and more mature in recent years. The main reason is that a new wave of market demand has been promoted by Samsung’s launch of LED backlight TV thus many LED manufacturers are willing to make investments and expand production. In addition, since 2009, other factors such as MOCVD subsidies, the promotion of LED street lamps and outdoor lighting projects have also help rationalize LED prices and better the lighting market development. 

Nowadays, LED lighting market demand is growing steadily driven by various government policies around the globe. In view of the Japanese market, remarkable growth can be seen especially in the field of indoor lighting such as bulb lamps, grille lamps. Besides, in the Chinese market which has attracted much attention over the past years, more and more importance has been attached to commercial space lighting as international manufacturers are expanding facilities in China. In fact, the promotion of LED lighting products is one of the indispensable policies for the 12th Five Year Plan of China. 

Moreover, the growth of LED lighting can also be observed from exhibitions. In 2010, 90% products on display in Light+Building Frankfurt 2010 were LED lighting applications. In order to promote the CFL replacement with LED indoor lighting, manufacturers used to emphasize luminous efficacy and amortization cost. Nevertheless, it is found in the Lighting Fair 2011 that Japan’s renowned manufacturers have started to stress the light comfort level and many enterprises in other businesses have crossed into the LED lighting industry. In this context, Edison believes that along with LED popularization between 2011 and 2012, LED lighting solutions will also turn module-based.

Product Management Strategy: 2011 is the starting year of LDMS business

As early as its establishment in 2001, Edison held the belief that LED technology development will make a lighting market. It aims to be the leader of LED lighting industry with ten years of commitment. In light of its product strategy, Edison focuses on high power LED and pays great attention to component brand management. For this purpose, a platform is built up that combines systematic modules and the T.E.M.O (Thermal management, Electrical scheme, Mechanical refinement, and Optical optimization) technologies, which are most crucial to lighting applications, to provide customized professional design and production services, covering components, lens design, moulds and products. Thus, Edison offers LDMS, the integrated lighting service program to light fixture makers and distributors around the world as well as a series of additional services. Stressing on product quality and services, Edison hopes to distinguish itself from international lighting giants and regards the year of 2011 as the starting year of its LDMS business.  

Channel strategy: the winner must know clearly about its position and global trends

In terms of market selection, Edison has not only done a SWOT analysis considering its own strengths and weaknesses but also taken government policies of the world into account when thinking about how to compete with major international manufacturers. With regard to Japanese and North American markets, due to the IP limitation and market domination by local giants, it chooses to tap the emerging markets and select 2nd and 3rd tier lighting companies to establish customer relations. After 5 to 6 years of great efforts, Edison has developed a complete channel network. With additional services like LDMS, it is able to provide ODM products to light fixture manufacturers and save their relevant design time. In view of the emerging markets, although there are no clear policy supports like in Japan and the USA, it is worth the attention, for example, even for 1% of the business opportunities from the rich in India, a BRIC member because of its 1.3 billion population base. At present, 1/3 of Edison’s revenue comes from Taiwan and mainland China, another 1/3 from the European market and the last 1/3 from other markets. Therefore, with a comprehensive knowledge of global trends, Edison thinks that there is a chance to win even faced up with international lighting giants.

Impacts of Japan’s earthquake on LED industry

So far, LED manufacturers and supply chains haven’t suffered much from the Japanese earthquake. Instead, product supply might be more affected by the power failure and limitation after the catastrophe. Therefore, due to the disruption in supply chains of components and raw materials, TV shipment suffers to a certain degree. However, from a long-term perspective, the earthquake will have a positive effect on Taiwan manufacturers. For the outlook of 1Q prices, it is the traditionally slack season between December and February but the market is predicted to warm up in March. If low-end chip output increases or major lighting manufacturers take the lead to bargain prices, price fluctuation will pick up. If the chip prices keep flat, then the average price of LED chip package will stop the downtrend. 


By Lowy Chang

Disclaimers of Warranties
1. The website does not warrant the following:
1.1 The services from the website meets your requirement;
1.2 The accuracy, completeness, or timeliness of the service;
1.3 The accuracy, reliability of conclusions drawn from using the service;
1.4 The accuracy, completeness, or timeliness, or security of any information that you download from the website
2. The services provided by the website is intended for your reference only. The website shall be not be responsible for investment decisions, damages, or other losses resulting from use of the website or the information contained therein<
Proprietary Rights
You may not reproduce, modify, create derivative works from, display, perform, publish, distribute, disseminate, broadcast or circulate to any third party, any materials contained on the services without the express prior written consent of the website or its legal owner.

Tokushima, Japan - 6 March 2024: Nichia, the world's largest LED manufacturer and inventor of the high-brightness blue and white LED, has started mass production of the new UV-B (308nm) and UV-A (330nm) LEDs in its popular 434 Series packa... READ MORE

New XLamp® S Line LEDs enhance growth, last longer, lower energy costs Horticulture and other forms of agricultural lighting require application-tuned ratios of spectral content, high efficacy and long lifetimes. Whether you are interested... READ MORE