June 15, 2009
Mainland China Pledges Lucrative LED Orders to Taiwan
Taipei, June 11, 2009 (CENS)--Members of a mainland China procurement delegation currently visiting Taiwan said the delegation would place lucrative contract orders with Taiwanese light emitting diode (LED) manufacturers by the end of this year for LED products including epitaxy wafer, chips, packages and lighting systems.
The procurement is associated with the mainland`s aggressive plan to install 1.4 million LED streetlights in major cities at yearend as part of its energy-saving effort.
Taiwan`s government-backed Industrial Technology Research Institute (ITRI), which is consigned by the government to invite the delegation to visit Taiwan, estimates the procurement value to amount to NT$15-20 billion (US$454-606 million at US$1:NT$33), around 50-70% of the streetlight plan`s total spending of over NT$28 billion (US$848 million).
The delegation is made up of 80 representatives from the mainland`s various industries including LED. Among the LED representatives is Chairman Liang Yi of Landsky, which was contracted to equip the "Bird`s Nest" Beijing National Stadium with LED lighting during the 2008 Olympic Games. Delegation officials pointed out that the mainland`s LED industry revenue would likely top 100 billion Chinese yuan (US$14.9 billion) in 2010, with a huge percentage contributed by Taiwan`s components suppliers.
The delegation met with their Taiwanese counterparts including top executives from LED packagers Everlight Everlight Electronics Co., Ltd., Lite-On Technology Corp. and Forward Electronics Co., Ltd. as well as chipmaker Epistar Corp.
Everlight Chairman Y.F. Yieh expected LED market to be brighter next year than this year and his company`s monthly sales to set new high in the second half this year. The company is Taiwan`s No.1 LED packager.
Epistar President B.J. Lee pointed out that LED demand is turning larger than supply, making the market outlook for the third quarter quite bright.
W.S. Chou, chairman of LED lead-frame maker I-Chiun Precision Industry Co., Ltd., noted that Taiwan`s LED industry is currently saddled with shortage of expitaxy wafers as a result of robust orders.
Lite-On President S.H. Lin estimated the global LED industry would still have 30 years of boom ahead in consideration of consistent rollouts of new applications for white LEDs. He noted that his company would introduce LED lighting fixtures in July, marking the company`s first step into LED lighting segment.
Chipmaker Formosa Epitaxy Inc. has begun output expansion at its factory in Shandong Province of the mainland to cope with upcoming brisk orders.
(by Ken Liu)
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