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Nichia LED prices triggered a few happy tears

Light emitting diode (LED) in Taiwan province of China following the second quarter of the price of 20%, the third quarter will cut prices by 8% to 10%, and the Japanese LED manufacturers Nichia rushing into the notebook computer (NB) with LED backlight, the recent sharp price, the price has been reduced to the same with Taiwan, formed a great competitive pressure on Taiwan LED factory, a price war has broke out.

LED manufacturers in Taiwan area of our country are all prepared to meet the challenge. LED industry said, because Nichia strategy in LED lighting market before the error, instead of rushing into the LED backlight market, and at low prices to grab the city of Taiwan LED industry is very big. Experts pointed out that Nichia and OSRAM of Germany dominate global LED key patents, relying on technology, patent and other advantages, the price is to initiate the offensive, pose a great threat at the start of the Taiwan LED industry.

Crystal electric and other LED makers in June revenue decline, crystal power, light factory LED billion share price decline than other electronic industries more heavy; apart from the mainland mobile phone white brand weak demand and the end of the quarter inventory and other factors, and positive price rush, menacing arias, is also the main reason.

In June 30, 2008, China's Taiwan region, the backlight module manufacturers, currently used in backlight LED still rely on most Japanese supply, such as Nichia and TOYOTA synthesis, because it involves the patent right, Taiwan LED factory is very difficult to intervene in the market; even in the rush into the NB backlight chip market, currently only from low NB to also cannot to enter the mainstream market NB.

LED backlight for NB, in the past are side-e-mitting (Side View) package, this is due to the early Nichia patent, later OSRAM also by Taiwan manufacturers is difficult to enter. Last year ASUS launched low-cost computer easily after PC, Taiwan LED plant (Top View) with positive light way package, although relatively thick, low level of technology, but also created the majority of the LED market, also triggered a rush in positive light Nichia market determination. Therefore, Nichia will be launched in September 3014 positive light type products, launched at the end of 3020 types of products, the price will be consistent with Taiwan, Taiwan will be substantially compressed by LED business in NB.

And China's Taiwan region since the second quarter of this year, the board has suffered great pressure on the price, it also requires zero component factory price in order to enhance profitability. Now, the Japanese LED plant began to cut prices, which will help to enhance the profitability of the panel, the LCD panel industry, is a good thing, but for the LED industry in Taiwan, is the beginning of a nightmare.

Source: Taiwan Economic Daily

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