In response to the government's decision to postpone an increase in power prices originally scheduled for the December 10, 2012, Taiwan-based LED chip packaging company Everlight Electronics indicated that the LED lighting market in Taiwan will keep growing in the second half of 2012 at a little slower pace due to the postponement, while LED epitaxial wafer and chip maker Epistar said the postponement would have limited influence on the penetration of LED lighting in Taiwan.
Pricing is essential for consumer consideration, Everlight indicated. While many vendors have lowered prices for LED light bulbs to US$10 currently, such prices are expected to continue to drop by over 10% in the second half of 2012 and further slip in 2013, Everlight noted.
Consumers have been aware of the importance of energy saving and expect power price hikes due to a continued increase in international oil prices, Epistar indicated. In addition, prices for LED lighting products will continue falling under pressure of production cost control, Epistar noted. Therefore, penetration of LED lighting in Taiwan will increase, Epistar said.
Sales of LED lighting products in the Taiwan market in the first half of 2012 were five times the total in the same period of 2011, and the proportion of total lighting sales value for LED lighting during January-May reached as high as 20%, according to industry sources.
With shipments for orders on hand scheduled for October, Everlight has seen increasing demand for LED backlight units from China-based LCD TV vendors and expects revenues for September to remain the same as in August. The industry sources estimate that Everlight will see 5-10% sequential growth in third-quarter revenues.
