PIDA: Taiwanese LED Manufacturers Growth Rates to Overtake Several Asian Competitors in 2015

Taiwan’s LED component industry market value is expected to grow 14% in 2015, according to estimates by Taiwan’s Photonics Industry and Technology Development Association (PIDA).

After completing mergers last year, top listed manufacturers Epistar and Everlight’s will be expanding production capacity this year. Growing market values will lead to higher growth rates in the industry compared to last year, noted a UDN report.

Despite having the world’s top LED market value, Taiwan’s LED industry has limited global influence, and need to keep a watchful eye on Chinese competitors’ developments.

In the LED component sector, Taiwan is still the top ranking country, said PIDA. Taiwan has been able to increase its international visibility, due to top manufacturers business strategies. Epistar has continued acquiring other companies, and might have an opportunity to merge a foreign company in the near future, while Everlight has started expanding production capacity with the addition of a new company.

Although, Taiwan has the world’s highest LED market production value, the country’s LED industry is not particularly influential in the international lighting market. The lighting market is still mainly controlled by large international manufacturers or regional lighting companies. New competitors, such as Chinese LED manufacturers San’an Opto and Nationstar, have also emerged in previous niche markets such as smartphones and TV backlight. The lighting application market has been seriously affected by Chinese manufacturers intense price wars.

PIDA estimated eliminations and integrations will continue throughout the LED industry this year. Taiwanese LED manufacturers should take advantage to develop niche markets, for instance Japanese manufacturer Renesas has exited the red light market. Taiwanese LED chip manufacturers should make the most of this opportunity to replace the supply gap Renesas left behind, manufacturers including Everlight and Tyntek are expected to benefit from these orders.

Japanese manufacturers will still be affected by currency exchange rate disruptions this year, said PIDA. Although, Japanese Yen products will receive higher investments because of its higher price competition, component procurement costs have also soared as a result. Therefore, Japanese manufacturers LED component value will only grow an incremental 5%. Korean manufacturers will also see a minor 2% growth this year, as companies secure LED monitor and smartphone export markets.

Chinese manufacturers will have the highest growth. Lighting applications expeditious growth spurred mid-power LED developments, additionally LED manufacturers have gradually formed their own supply chain. San’an Opto, MLS, Nationstar and Jufei Opto recently reported 40% growth rates, and annual market value is expected to climb up 25%.
 

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