LED Industry Restructure Trend in Taiwan and China to Continue in 2014

Quotes/ Perspectives from LEDinside: 
LED TV market penetration rate has reached a pinnacle point, and there will be limited room for growth in 2014. The LED TV sector might even be seeing stalled or sliding demands this year, said Roger Chu, Research Director, LEDinside.
News Source: 
Apple Daily (蘋果日報)

Another wave of industry restructuring is expected to occur in Taiwan and China as LED lighting penetration rates continue to rise, according to Chinese-language Apple Daily report. LEDinside and Photonics Industry and Technology Development Association (PIDA) both projected the large enterprises expansion trends is well established. Second tier LED die manufacturers are an important observation index in Taiwan, while in China it is LED package manufacturers.

Taiwan’s largest LED package manufacturer Everlight will no longer be acquiring other package manufacturers, said company Chairman Robert Yeh. The company has already acquired Taiwanese LED wafer and chip manufacturer Tekcore and German luminaire manufacturer WOFI.

LED lighting revenue to exceed backlight applications

LED TV market penetration rate has reached a pinnacle point, and there will be limited room for growth in 2014, said Roger Chu, Research Director, LEDinside. The LED TV sector might even be seeing stalled or sliding demands this year, Chu added. LED package manufacturers with a focus in backlight applications will be turning to lighting, which will lead to lowered costs and increased market penetration rates. Accompanying growing lighting demands, Yeh expected Everlight’s LED lighting revenue will exceed backlight revenue this year.

Cross-strait LED industry trends 

Although, Chinese LED manufacturers are actively seeking partnerships with Taiwanese manufacturers, Yeh noted there are differences in the two countries LED industry model and market competition concepts.Taiwan is a free market, while the Chinese economy is supported by local government and projects. There are still many obstacles to overcome before cooperation can be realized, concluded Yeh. 

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