Taiwan plant to accelerate vertical integration, seize the LED lighting market

2011 global LED backlight TV sales are poor, Taiwan LED manufacturers are also affected, leading to last year's LED output value of 84 billion 744 million yuan in Taiwan, down by 3%. Even if the back light weak demand, but the growth of LED lighting in the bud stage, 2012 LED lighting is off the first year, LED bulbs have the opportunity to see the $10 in the second quarter of this year, coupled with the government of all the policy blessing, LED lighting products increasingly low price of the first half of 2012 is expected to grow in volume.

Many factory already smell the LED industry changes, to reduce the backlight orders proportion, and then through the vertical integration of industrial chain to accelerate the LED lighting market layout, and gradually increase the proportion of sales of LED lighting, LED lighting applications in addition to accelerate the transformation, in order to increase the lighting OEM orders, some industry also launched its own lighting brand, strengthen the market advantage position.

According to the economy and the trend of IEK Industry Research Center statistics, in 2011 the global LED lighting market size of $7 billion (about NT $210 billion), compared with $4 billion 900 million in 2010 (about NT $147 billion yuan), the growth rate of about 42%, in the lighting market penetration rate reached 7%, forecast 2015 LED lighting market size of up to $21 billion 700 million (about the new NT $651 billion).

Legal believes that 2012 LED growth still need to rely on lighting governments policy support and promote the product price, the government will expand cross-strait LED lighting demonstration project, and governments will continue to ban incandescent bulbs, and ceased production in 2014 years, LED lighting will replace the existing energy-saving lamp market. However, LED lighting products are still relatively high prices, energy-saving light bulbs about 3~5 times the price, so the market penetration rate of less than 10%, but with the LED component prices fall sharply, according to the annual 35~40% LED bulb decline, the second quarter of this year is expected to be the key to success in reducing the price of $10, and the price gap between traditional lamps.

Outlook 2012, Taiwan LED industry will be more active layout lighting applications market, accelerate the vertical integration of the supply chain, continue to improve the proportion of LED lighting products.

The upper grain crystal power plant through vertical integration of virtual acceleration LED lighting layout, the company and the Taiwan factory as downstream packaging factory Everlight LED lighting module factory such as Delta, South photoelectric cooperation, even with Chinese Yankon and NVC Strategic Alliance for sea stability, LED lighting proportion is expected to increase to 2012 3.

The same is the new century upstream of grain plant, is in addition to extending down to LED OEM lighting factory, is also working with terminal access factory, the company and Japan JFE Engineering Alliance, Japan lighting market layout path is quite deep, China is China into two 3C pathway, to supply, Suning and GOME stores commercial lighting, lighting last year accounted for about 10~15%, this proportion is expected to increase.

Ronda is effective vertical integration business model, PHILPS, OSRAM and other international manufacturers in the supply chain, last year also amplified Suzhou factory lighting assembly line, and has successfully started production of lighting products, the company estimates the proportion of total revenue will rise from last year, nearly 4, this year is expected to rise to about 5 into.

Vertical integration leading packaging factory Everlight industrial chain is increasingly mature, with the upstream epitaxial plant Taigu, downstream of the lighting module layout, except through cooperation with Shanghai, Ya Ming captured the mainland market strategy, its own brand of EVERLIGHT lighting is also in December last year officially landed in Hongkong market, this year is expected to enter the Japanese market, although the operation of the brand the hard way, but this year to LED billion light lighting brand layout will be more active, the proportion of lighting products will gradually pulled.