International LED lighting firms have been issuing orders directly to China-based firms. This may marginalize Taiwan-based LED firms. China-based peers have economies of scale and their monthly packaging capacity can reach as high as three million units each.
According to China-based LED firms, China's LED indoor lighting market grew about 36% in first-half 2012, and wil grow 40% to top CNY25 billion (US$3.97 billion).
International firms such as Philips and Osram have been working with strategic partners in China.
Biing-Jye Lee, chairman of Taiwan-based Epistar, indicated that despite the fact that Taiwan has superior technology, the supply chain lacks large-size lighting packaging houses and direct distribution channels.
Source:
http://www.digitimes.com/news/a20121003PD205.html