Taiwan-based makers from the LED lighting sector have been tapping emerging markets, including Indonesia, Thailand, India, Russia and Brazil, as they face fierce competition in North America, Europe, Japan and China, according to industry sources.
The North America and Europe LED lighting markets have been dominated by international vendors, while the Japan market features barriers in terms of patent protection, the sources said, adding in China, the price competition is chaotic.
LED packaging house Everlight Electronics has set up factories in Southeast Asia and has sales agents in the Russia market; Genesis Photonics has supplied LED chips for Russia-based LED lighting makers; and Leotek Electronics has shipped LED streetlamps to the Latin America and Central Asia markets with shipments expected to reach 400,000 units in 2015, the sources said.
LED lighting demand in the ASEAN market in 2014 is estimated at US$1.2 billion, the sources noted. As ASEAN Economic Community allowing customs duty-free trading of goods, services and free flow of capital among ASEAN countries will come into force in 2015, LED lighting makers in the ASEAN market will expand production capacities, which is expected to afford business opportunities for Taiwan-based LED makers, the sources indicated.
With 2014 demand for LED lighting in the Russia market estimated at US$1 billion, the Russia government plans to construct a natural gas pipeline system between Russia and China and the corresponding LED lighting project is worth RUB2 billion (US$46.1 million), the sources said.
