Taiwan-based Nan Ya Photonics, a joint venture between LED chipmaker Epistar and the Formosa Plastic Group, has completed installation of an automated production line. The plant's monthly capacity of LED light bulbs will be around 400,000 units, but at the initial stage, monthly shipments will be around 100,000 units. Nan Ya Photonics has own-brand and OEM businesses, and is seeking OEM orders from Europe- and US-based firms.
Nan Ya Photonics announced in March 2012 plans to set up a fully automated production line for LED light bulbs. Some peers had concerns that if total shipments cannot be increased rapidly, the benefits of economies of scale will be eroded. According to Bor-Jen Wu, president of Nan Ya, automated production is not only cost effective but can also ensure quality control.
Nan Ya plans to introduce the cheapest 7W LED light bulbs in Taiwan. Wu stated that the purpose is not about price competition. Because the product is simple and yields are rising, the firm is relatively more cost competitive.
Wu noted that Taiwan's LED light bulb market size is limited, hence the firm aims to expand to international markets such as Europe, the US, and Japan. Nan Ya believes the LED lighting market will continue to see tough competition in 2013, but through natural eliminations, the market is likely to improve in 2014.
Wilfred Wang, chairman of Nan Ya Photonics (left), Ming Jiunn Jou, president of Epistar (middle), and Bor-Jen Wu, president of Nan Ya Photonics (right)
