Taiwan-Based LED Firms Have Been Eager to Enter China's LED Market

Taiwan-based LED firms have been eager to enter China's LED market. Through cooperation, Genesis Photonics and Ledtech both signed strategic alliance agreement with China-based Potevio. Taiwan-based LED packaging house Everlight also have been planning to distribute own-brand LED lighting products. According to industry sources, the firms need to enter the market in 2011 to secure advantageous position as the market expands. LED lighting for businesses is likely to show growth first. The business clients tend to emphasize costs of the whole procurement, hence technology and quality will become the keys to obtain orders. China's government has announced targets for LED and solid state lighting for 2015. The self-sufficiency rate of LED chips will increase to 70% which will decrease the number of LED chipmakers to 3-5 firms. Genesis Photonics recently issued global depositary receipts (GDR) of US$15 million for the investment in China and the expansion of capacity. Genesis expects monthly capacity of epitaxial wafer to reach 250,000 units by end of 2011. David Chung, chairman of Genesis, stated the cooperation with Potevio can enhance the completion of the supply chain and gain opportunities to obtain large-scale projects. The business model will be B2B, added Chung. Ledtech also established cooperation with Potevio to provide solutions to green lighting and energy management. Ledtech expects to supply 10 million LED light tubes in the next three years. Everlight plans to increase monthly packaging capacity to 2.6 billion units and promote own-brand LED lighting products to China. Recently, there are many China-based LED packaging houses with advanced technologies that can match international firms. However, most packaging houses remain small. Source: www.digitimes.com