Taipei, Dec. 18, 2012 (CENS)--After nine months of hard work, Nan Ya Photonics Inc., a high-brightness LED wafer and chip maker affiliated with Taiwan's Formosa Plastics Group, is about to fully automate its production lines of LED bulbs sold under its NYPI brand in late December, which is expected to trigger price cuts in the competition on the island.
Worth mentioning is that Nan Ya Photonics will then become the world's first LED bulb supplier with fully automated production lines. This will enable the company not only to significantly ramp up its output to drive brand sales, but also to handle contract production to popularize energy-saving LED lightings worldwide.
Market observers pointed out that when the automated production line is fully operational, the company is expected to churn out 400,000 to 500,000 units of LED bulbs a month, compared to about one million units demanded annually in Taiwan. The unparalleled production efficiency will boost the supplier's price competitiveness in the Taiwanese market.
Some observers believe that the unit price of NYPI's 7W LED bulbs is likely to drop to below NT$200 in the future from the current level of around NT$299 after Nan Ya Photonics's automated production lines become operational. Hopefully, the company will achieve a bigger market share starting in the second half of 2013 to threaten existing players in the marketplace.
In the face of NYPI's pricing advantage to be driven by production automation, Everlight Electronics Co., Ltd., one of local LED bulb brand vendors, for instance, has moved to integrate its product lineups, and launched several new LED bulbs using COB (chip on board) packages, which feature higher cost-performance ratios and utility than most competing models, to square off against competitors.
(by Steve Chuang)
