LED lighting market is booming but price competition has been causing firms to see shrinking profit margins. Taiwan-based LED firms aim to improve technology and enter the automotive lighting market.
Lite-On Automotive Corporation, a subsidiary of the Lite-On Group, has been focused on the automotive lighting market. The Lite-On Group noted that 2012 revenues from automotive applications were around NT$8-9 billion (US$265-298 million) and it expects 2013 sales to reach NT$10 billion.
Lite-On noted that the automotive lighting market is a niche market with higher gross margins. However, the automotive component supply chain is relatively closed and lighting verification process times are relatively long, but once the firms enter the supply chain, relationships are steady. Lite-On Automotive Corporation has been cooperating with Europe-, US-, Japan-, and China-based automobile brands. In particular, the firm added new customers from Japan and China in 2013.
Taiwan-based LED packaging house Unity Opto stated the firm's automotive lighting products have been in the process of verification by Europe-based brands. The firm hopes to obtain verification in 2014.
LED chipmaker Formosa Epitaxy recently debuted its newest product, package free chips (PFC), that can be used for LED automotive front lighting. The firm disclosed that LED automotive front lighting has high technological barriers as the core LED chips require high brightness per unit. Shipments of automotive front lighting that adopt Formosa Epitaxy LED chips began in small volume in June and the firm believes volumes will increase in July.
Taiwan-based LED automotive lighting module design and manufacturing firm Laster Tech has been a supplier for China-based Shanghai Koito Automotive Lamp. The latter firm has a 30% market share in China. Through the cooperation with Shanghai Koito, Laster has been supplying products for brands such as Volkswagen, Toyota, and Honda.