Japan-based Nichia has gained a leading market status in EMC (epoxy molding compound)-based LED chip packaging, but some Taiwan-, China- and South Korea-based LED packagers have been competing for orders from LED lighting vendors and consequently Nichia is expected to lose 20% of orders in the second half of 2013, according to Taiwan-based LED makers.
Nichia obtained several patents regarding LED chip packaging based on EMC in 2007 and then offered an LED packaging price of US$0.2/W, lower than the US$0.22-0.30/W quoted by Taiwan-based packaging houses and US$0.6/W by US-based companies, to become dominantly competitive in price, the sources said.
In view of fast growing demand for LED lighting, Taiwan-based Everlight Electronics and Lextar Electronics, China-based Shenzhen Refound Optoelectronics as well as South Korea-based Samsung Electronics and Seoul Semiconductor are poised to compete for orders for packaging LED chips used in LED lighting, the sources noted. While Nichia's quotes have declined to US$0.15-0.16/W, Taiwan- and China-based competitors have offered 20% lower prices, the sources said.