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June 24, 2017

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Taiwan's LED packaging sales down in China in 2013 amid competition

TAIPEI--Taiwan's light-emitting diode (LED) packaging services providers saw their sales in China edge lower in 2013 amid rising competition from their Chinese counterparts, according to a research report.

Sales in China were also affected by the continued growth of global brands, such as Nichia Corp. (Japan), Cree Inc. (USA), Philips (Netherlands) and Seoul Semiconductor Co. (South Korea), said LED inside, a research unit of Taipei-based market advisory firm TrendForce Corp.

Everlight Electronics Inc. ranked as the biggest Taiwanese LED services provider in China's US$7.2 billion LED packaging market and the second biggest of all suppliers, trailing only Nichia, the report said.

Taiwan's LED packaging firms had sales of US$640 million in China last year, down 1 percent from a year earlier.

In contrast, Chinese vendors' revenues in their home market rose 15 percent year-on-year to US$4.5 billion, and international brands saw their sales grow 40 percent to US$2 billion.

In addition to Everlight, Taiwan's Lextar Electronics Corp. and Unity Opto Technology Co. also had footholds in China's market in 2013, but only Everlight was among the top 10 suppliers there.

Four Chinese vendors, including Foshan Nationstar Optoelectronics Co. and Shenzhen Jufei Optoelectronics Co., joined Everlight in the top 10, along with one company each from the U.S., Japan and the Netherlands and two from South Korea, according to LEDinside.

The top 10 vendors accounted for 43.6 percent of all sales in the China LED packaging market in 2013, LEDinside said.

Yu Bin, an analyst with LEDInside, said China was a late entrant in the LED packaging business, lagging behind other countries in building patent portfolios, but Chinese authorities have supported the industry, hoping to help it catch up with rivals.

Among the government's strategies is to accelerate the development of LED chip production in China, which would create business for Chinese LED packaging firms and help them grow.

Chinese vendors are also upgrading their technology, strengthening their competitive edge relative to global rivals.

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