Nichia to Lose 20% of Its Orders in the Second Half of 2013 for Competitors

According to the introduction from Taiwan-based LED manufacturers, Japan-based Nichia is the world's largest supplier of High Brightness LED, and it has occupied a leading market status in EMC-based LED chip packaging industry, but some LED packaging enterprises from Taiwan, China and South Korea have been competing for orders from LED lighting vendors, so that Nichia is expected to lose 20% of its orders in the second half of this year.

Nichia received several patents regarding LED chip packaging based on EMC in 2007 and then offered an LED packaging price of US$0.2/W, cheaper than the US$0.22-0.30/W quoted by Taiwan-based packaging plants and US$0.6/W provided by US-based enterprises; therefore Nichia becomes dominantly competitive in price.

In view of fast increasing demand for LED lighting, Taiwan-based Everlight Electronics and Lextar, China-based Refound Optoelectronics as well as South Korea-based Samsung Electronics and Seoul Semiconductor are poised to compete for orders for packaging LED chips used in LED lighting. The sources stated that although the prices Nichia quoted have reduced to US$0.15-0.16/W, competitors from Taiwan and China have offered 20% cheaper prices than Nichia's.

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