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Current Issue : Q1,2012




Taiwan Photonics News :  
  Taiwan LED Industry develop towards high value-added application
Mitsubishi Chemical to cease disc production and outsource to Taiwan
 
 

Taiwan LED Industry develop towards high value-added application

 

Many LED lighting products such as LED bulb, down light, projecting lamp or light tube are released progressively every year by Taiwan¡¦s companies and it is clear that these products have become a fierce competition in this ¡§red ocean.¡¨ Another new market, however, will open up opportunities for Taiwan LED industry¡X the special lighting application market. This small yet high entry threshold market is pushed by the local government¡¦s promotion, the integration of existing resources and the collaboration of cross-industries.

In terms of the market shares, the current LED niche market share makes up only a small part in total lighting market, with a slight increase of 1 to 2 percent every year. In 2011, the special lighting application market share was USD 62 million (about NTD 1.86 billion) and it is expected to grow up to USD 137 million (about NTD 4.14 billion) in 2012, in which the application on agriculture, aquaculture and horticultural industry will increase faster.

Taiwan¡¦s Industrial Technology Research Institute (ITRI) has formed the Agriculture, Fisheries and Animal Husbandry LED Application Alliance in 2011, and has integrated technologies of many organizations. Besides, a Taiwan¡¦s time-honored home builder Pacific Construction Co., Ltd. has taken its first step into the green energy industry and has opened the first green concept store SOFR3SH in Taipei by combining the plant factory with the Yang Zu-Men¡¦s farmers¡¦ bazaar. Pacific Construction is planning to launch Taiwan¡¦s first construction project of home-type plant factory and will further promote this project to the city-type scale. This corporation also intends to build a multiple channel for green fair and light meals. This home-type plant factory project has produced great sales results with good acceptability from customers.

Compared with the interchangeable lighting products filled in market, the special lighting application is still insignificant. To enter into this emerging market, companies can think in different directions: to launch a price war to obtain a meager profit, to step into this niche market in a well-planned way or to carry out a cross-industry cooperation with Taiwan¡¦s agriculture or fisheries industry.
 
  Mitsubishi Chemical to cease disc production and outsource to Taiwan
 

With many global makers¡¦ withdrawal from the optical disc market, the Japan¡¦s major disc factory Mitsubishi Chemical may also, if is as rumored, stop the disc production and outsource the production to CMC Magnetics and Ritek, the Taiwan-based companies. If other Japan¡¦s major manufacturers cease the disc production in the future and outsource to CMC Magnetics and Ritek too, Taiwan¡¦s makers will enhance the world's largest disc supplier.

PIDA states that with the prevalence of Internet and HDD and with the growing demand of Blu-ray disc and SD card, the demand for CD and DVD disc now becomes decreasing, and the audio cassette, VHS and MO disk demand is on the other hand rapidly diminishing and will eventually quit the global recording media market. The media generational change is under its way.

In terms of the 2012 market demand, the global Blu-ray disc demand will account for about 360 to 400 million units, increasing doubly from 180 million in 2011. Due to the full development of disc market and affected by the price cut/meager profit competition and the patent lawsuits between companies in the past years, many small and medium disc manufacturers have withdrawn from the market and even the major makers such as Ritec, Taisil Electronic Materials, and Resource Electronics have to turn to invest the green energy industry for a long-term development. In the present declining market, the outsourcing from Japan¡¦s major disc makers can give a timely help for Taiwan¡¦s companies.

For more information, please visit PIDA¡¦s exposition website at: http://www.optotaiwan.com/; http://www.displaytaiwan.com

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