After the establishment of LED Xiamen electric power plant in order to save labor costs

Crystal electric to Xiamen set up after the LED process plant, is expected in the first quarter of next year trial production, the second quarter is expected to show the effectiveness of Cost Down. The industry pointed out that this is the first upstream of Taiwan to the mainland to set up a production line process, but the legal person believes that the initial cost reduction effect is limited.

Crystal current foreign ownership in 24.74%. EPISTAR pointed out that after the process including evaporation, cutting, grinding, inspection, required more manpower, accounting for about 15% to 20% of the cost structure, to the mainland factory production is expected to cut labor costs. Taiwan industry evaluation, an employee can be arrived in Xiamen six local salary costs, though, will be the implementation of the labor contract law, improve the basic salary, but EPISTAR pointed out that this is the first crystal to visit the land after the investment period of plant, although the future may improve the basic salary, but the crystal power, still can reduce the cost of the human reaction results.

Crystal electricity, said only 1/10 of the initial period of LED after the removal of four yuan to Xiamen factory production, the future if the Xiamen plant yield increased, and Cost Down good results, will consider the relocation of some of the production capacity in the past. It is understood that the Xiamen plant covers an area of great, originally intended to set up the League of nations Xiamen BEOL, later incorporated into the League of nations crystal power, the land is to be brought to the crystal, crystal electric in November to start construction, is expected in the first quarter of next year and put into production, the fastest second quarter production, but not too early to reduce cost effectiveness obviously.

Legal person believes that the depreciation accounted for the upper part of the higher cost structure, higher labor costs, labor costs are relatively low, improve the utilization rate of gross profit margin to improve the more direct help. Legal person believes that the LED packaging factory to the mainland to set up factories, crystal power to the latter part of the process moved to Xiamen, close to the consideration of customers should be more than cost considerations.

Taiwan canyuan upstream epitaxial plant, China said that at present not to invest in the mainland BEOL plant project.

Source: Taiwan Business Times