Taiwan Delta Electronics and Lextar Benefit from Japanese Power Shortage

As Japan closed its last nuclear reactor a few days ago, the country’s electricity shortage is estimated to surge to 13% this summer. And industry executives estimated the power shortage may run up to 20% if the summer heat rises higher than expected. But it brings new opportunities to Taiwan Delta Electronics Inc., Lextar Electronics Corp.

Since the March 11 earthquakes of 2011, Japanese market for the energy-saving lamps has been thriving. LED lamps in Japan’s market is estimated to spike 69% to 373.8 billion yen (US$4.6 billion at US$1:80 yen) this year from last year’s scale, according to market consulting firm Fuji Keizai.

As a result, based on the increasing demands from Japan market, Taiwan’s LED manufacturers, including Delta Electronics Inc., Lextar Electronics Corp. have received large orders.

According to Delta Chief Executive Officer (CEO) Y.J. Hai, power shortages and electricity rate hikes have helped boost the company’s LED-lighting sales by 200% in the first quarter, compared with the same quarter last year. In addition, many Japanese buyers have approached the company over supplying LED lamps in the Tokyo Lighting Fair of 2012, held in March.

As for Lextar, Chairman F.J. Su pointed out that power shortage has compelled Japanese to replace traditional lamps with LED lamps. The company has won contracts from a heavyweight Japanese buyer after landing a contract for up to 400,000 LED light tubes from Japan. What’s more, prosperous orders from Japan has inundated the company’s production line until the end of June.

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