As the market for LEDs used in backlighting is approaching saturation, lighting applications are expected to rise to 50% of the global LED production value in 2014, according to chairman Frank Chien for LED epitaxial wafer and chip maker Formosa Epitaxy.
Production value for LED chips used in lighting in 2014 will double on year, while that for LED chips used in backlighting will remain unchanged, Chien said. However, the ASP (average selling price) for LED chips in 2014 is expected to drop by 10-15% on year due to continued price competition, and makers have to cope with price falls through reducing production cost and/or improving product mix, Chien pointed out.
As China-based fellow maker Sanan Optoelectronics has acquired a 19.9% stake in Formosa Epitaxy, both companies will arrange order receiving on a complementary basis to maximize capacity utilization, Chien pointed out.
