China-based LED packaging service providers Shenzhen Refond Optoelectronics and Shenzhen Jufei Optoelectronics have signed with Japan-based Toyoda Gosei for license use of the latter's white-light LED patents for application to LED displays, backlighting and lighting, according to industry sources in Taiwan.
Refond Optoelectronics and Shenzhen LT Photoelectricity Technology, a China-based packager of LED backlighting used in small- to medium-size display panels, jointly obtained the patent licensing, the sources said. Refond in February 2014 acquired a 13.04% stake in LT Photoelectricity at CNY30 million (US$4.92 million), the sources indicated.
Refond Optoelectronics expanded LED packaging capacity by 40-50% and Jufei Optoelectronics did so by nearly 30% in 2014, the sources said. As China-based LED packagers are unable to obtain orders from international vendors due to a lack of patents, the two companies' obtaining patent licensing from Toyoda Gosei show their attempt to compete in the international market, especially in the LED lighting segment, the sources indicated.
The China-based LED packaging industry had total shipments in 2014 that increased on year by over 70% but the corresponding revenues of CNY56.8 billion increased by only 20% because the average selling price fell by about 30%, the sources said.