Increasingly competitive, Taiwanese factories need to be research and development and technical capabilities

The domestic LED chip factory has implemented a large-scale production reduction since the second half of last year. The Japanese government’s law enforcement director, Akutagawa, believes that this wave of production is mainly due to the performance (efficiency) of the LED itself. Due to the global economic slowdown, Taiwanese manufacturers must eventually return to research and development and technological capabilities, and the future competition will become more and more severe.

Akutagawa said that Taiwanese manufacturers have achieved counter-effects through merger actions and market share. In the past, production capacity was idle, which caused a burden. He believes that there are two main reasons for this wave reduction. First, the performance of LEDs is improved. The reduction in the demand for LEDs, such as the iPod, has reduced the average LED usage per unit from 10 to 4, further impacting LED demand. In addition, the global economic slowdown has led to a decline in the purchasing power of the consumer market and has also weakened the growth of terminal devices.

Akutaghachi has accurately predicted that the mainland Jinshajiang acquired Philips' Lumileds fear-breaking bureau. This time, Osram Lighting is about to be split, and all of them are land-based manufacturers. Nichia has not commented. However, Nichia believes that if the market name of Mulinsen under the Osram lighting, it will not help the recovery of the industrial order. On the contrary, LED lighting originally took the price competition route, and the addition of land-based factories will only intensify the price war.

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