San'an Opto Patent Strategies a Looming threat to Taiwanese Manufacturers Oversea Business

San’an Optoelectronics (San’an Opto) has big plans to become a force to be reckoned with both domestically and internationally. The company is expanding production capacity, releasing announcements one after another, according to a Money DJ report. Not only is the company seeking to dominate the Chinese market with its expansion plans  to overtake Epistar’s top spot in China; the company is also vying the international market and strengthening its patent strategy through the recent joint venture with Seoul Semiconductor. Taiwanese manufacturers not only see San’an Opto as a huge Chinese competitor, but also as a threatening force that is eroding overseas opportunities and disrupting global business strategies.

At the moment, Taiwanese manufacturers including Epistar, FOREPI, and Genesis Photonics Inc. (GPI) still have technological advantages over San’an Opto, said Lu Shao-hsu, Senior Analyst with the Photonics Industry and Technology Development Association (PIDA). However, when it comes to production scale, economics of scale from San’an Opto’s manufacturing volume alone has beaten many Taiwanese manufacturers. The Chinese manufacturer’s production capacity is only second to Epistar. In the international market, Taiwanese manufacturers must first tackle patent barriers, a problem Chinese manufacturers are also facing as they set their sights overseas. 

All too aware of the patent barriers the company will face, San’an Opto announced on April 10, 2014 the establishment of a joint venture with Seoul Semiconductor. The joint venture, San’an-Seoul, is anticipated to help penetrate patent barriers set up by large international manufacturers through the use of Seoul Semiconductor’s key patent technology. 

This new partnership will threaten Taiwanese manufacturers much prided overseas market strategy advantages. 

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