Epistar expanding LED capacity at China joint venture

Taiwan-based Epistar is expanding its LED wafer and chip production capacity at KFES Lighting (Xiamen) – a joint venture (JV) with China-based China Electronics in southeastern China – from nine MOCVD sets currently to 30 in 2014, according to sources with the LED supply chain.

Taiwan-based Epistar is expanding its LED wafer and chip production capacity at KFES Lighting (Xiamen) – a joint venture (JV) with China-based China Electronics in southeastern China – from nine MOCVD sets currently to 30 in 2014, according to sources with the LED supply chain.

As demand for LED lighting is taking off, Epistar is also enhancing operations at its other plants in China, including: Episcrystal in Changzhou, a JV with Taiwan-based Lite-On Technology and China-based LCD TV vendor Konka; and United (Shandong) LED in northern China, a JV with Taiwan-based United Microelectronics Corporation (UMC).

The JVs are expected to account for 10-15% of Epistar’s consolidated revenues, the company indicated.

About Epistar Corp.

Epistar-logo

Epistar Corp. is the largest manufacturer of light-emitting diodes (LEDs) in Taiwan.[1] The company was established in 1996, and its headquarters are in the Northern Taiwanese city of Hsinchu. In 2009 it had an annual turnover of NT$10 billion. Epistar specialises in high-brightness LED products, which are used in general lighting, traffic signals, and various consumer products such as mobile phones and laptop computers. The company supplies the LED backlighting for Samsung liquid crystal displays. It is the world’s largest manufacturer of red and yellow LEDs, and holds over 1000 patents.[1] It has a history of patent disputes with competitor Philips Lumileds over the use of AlInGaP LED technology. However in September, 2009, Philips Lumileds signed an agreement to license AlInGaP technology to Epistar.

Epistar expanding LED capacity at China joint venture

China Mainland LED enterprises coming to Taiwan for talent hunting - Taiwan enterprises may face talent shortage

When mainland enterprises are enhancing their science and technology competitiveness relying on overseas talents, the Taiwan science and technology industry is confined by problems of expensing employee bonus, taxing stock bonus according to the market price, etc., which make many employees of...

talent shortage[/caption]

The LED factory San’an of the mainland poached the employees of the leading LED factory Epistar in Taiwan three years ago. This serious event of brain drain is called the “108 Heroes” event in the LED industry. Mainland enterprises coming to Taiwan for talent hunting are continuously increasing. Taiwan is only a small part of the “Ten Thousand People Plan” made by the mainland for overseas talent hunting.

When mainland enterprises are enhancing their science and technology competitiveness relying on overseas talents, the Taiwan science and technology industry is confined by problems of expensing employee bonus, taxing stock bonus according to the market price, etc., which make many employees of this industry question how can bosses of Taiwan enterprises keep their employees and their wages?

The “108 Heroes” event of the Epistar is only an epitome of the competition threat that the Taiwan science and technology industry are facing. In the LED industry, brain drain not only exists in Epistar. In fact, mainland enterprises also poached employees of the upstream epitaxial factory, midstream packaging factory and downstream lighting module factory. Compared to the matter that foreign merchants established R&D center in Taiwan in the past, the mainland enterprise poaching storm arouses more concern, because the concept “If you do not go to the west now, the situation will be worse in the future” has already germinated in the Taiwan science and technology industry.

When the board of shareholders of Forepi became the first LED factory attracting mainland capital by agreeing to releasing some shares to their mainland competitor San’an, Jian Fengren, chairman of the board of Forepi, said “They have large amount of capital. To gain a chance of survival, we’d better cooperate with them instead of competing with them.” Lin Xiucheng, chairman of the board of San’an, also came to Taiwan and promised to the talents “I will make you happy.”

Taiwan enterprises are internationally developing, so are the talents. Policies can confine enterprises, but not the talents and wages. The tragedy of brain drain happened to the Taiwan science and technology enterprises originated from the so called science and technology start-ups which have become the targets of the hatred toward the rich created by ideology.

The development plan of emerging industry of the mainland listed the science and technology industry as the key plan of the Eleventh Five Year Plan and the Twelfth Five Year Plan, implemented the “thousand people plan” from year 2008 to year 2011, and encouraged mainland science and technology enterprises to hunt talents overseas, so as to enhance competitiveness of mainland-funded enterprises on the international stage.

Mainland enterprises spent large amount of money on borrowing overseas talents, including the mainland mobile phone factory Xiaomi, which has recently spent large amount of money on poaching Hugo Barra, vice director of Android product marketing of the American enterprise Google. It’s not strange that nowadays working in the mainland is no longer betrayal but a springboard to the international stage in the eyes of employees of Taiwan science and technology factories.

But Taiwan once viewed the science and technology start-ups as an unreasonable well paid group in a long time, and thus implemented measures such as expensing employee bonus, taxing stock bonus according to the market price. For international science and technology enterprises in great favor of keeping talents by bonus system, “low wage system” is the fatal factor for keeping talents.

The “Ten Thousand People Plan” of the mainland has been implemented for only a year. The concept “Go now, or the situation will be worse” is being hotly discussed in the science and technology industry. How many Taiwan science and technology enterprises will encounter brain drain after this spring festival? What else contribution can the policy “keep but not attack” of the Taiwan government make to enhancing international competitiveness of Taiwan enterprises?

China Mainland LED enterprises coming to Taiwan for talent hunting - Taiwan enterprises may face talent shortage

Taiwan IC vendors to count on smartphone, tablet and LED lighting segments in 2014

Taiwan-based IC design houses will target the smartphone, tablet and LED lighting sectors in order to ramp up their sales and earnings in 2014, according to industry observers.

Taiwan-based IC design houses will target the smartphone, tablet and LED lighting sectors in order to ramp up their sales and earnings in 2014, according to industry observers.

Taiwan IC vendors to count on smartphone, tablet and LED lighting segments in 2014[/caption]

The performance of most IC vendors has been better than expected in the fourth quarter of 2013 so far, and the current wave of sales momentum is likely to continue in 2014 based on the industry’s previous experience, commented the observers.

Those IC design houses which have been cooperating with MediaTek are set to enjoy continued brisk sales in 2014 as MediaTek is expected to be able to continue boosting its share in the smartphone solution markets in China and other emerging markets in 2014, said the sources, adding that MediaTek has taken over 50% of these markets in 2013.

Taiwan-based IC design houses will also manage to ramp up shipments of their Wi-Fi chips, ambient light and proximity sensors, power management ICs, LCD driver ICs and touchscreen controller ICs to the white-box tablet sector in 2014, noted the sources, adding that tablet sales in China and other emerging markets combined are expected to reach 180-200 million units in the coming year, estimated the sources.

LED driver IC suppliers including On-Bright Electronics, Macroblock and Silergy, as well as analog IC vendors Richtek Technology, Global Mixed-mode Technology (GMT) and Leadtrend Technology will focus on boosting sales of their LED driver ICs to China, where the LED lighting industry will continue to grow robustly in 2014, commented the sources.

Taiwan IC vendors to count on smartphone, tablet and LED lighting segments in 2014

Epistar 2013 Q3 financial results: Deficit NT $834.22 million, EPS NT $ -0.09

Taiwanese LED chip manufacturer Epistar has released their 3Q13 financial results: facing Deficit in 3Q. Deficit NT $834.22 million, EPS NT $ -0.09.

Epistar facing Deficit in 3Q. Deficit NT $834.22 million, EPS NT $ -0.09.

Taiwanese LED chip manufacturer Epistar has released their 3Q13 financial results. Feeling the effects of LED for TV backlight applications inventory adjustments in 3Q, consolidated revenue for the quarter reached NT $5.75 billion (US $195 million), a dip from 2Q of 5.17 percent. However, consolidated gross profit reached 16.09 percent, growth of 15.89 percent from 2Q. Although, with more funds being pumped into R&D, operating profit margin only reached 3.55 percent, a decrease of 6.38 percent from 2Q. An addition of recognized earnings of over NT $300 million for loss on valuation of financial liability lead to a deficit of NT $834.22 million in 3Q, single quarter EPS NT $ -0.09 and accumulative EPS for three previous quarters of NT $0.02.

Epistar 3Q profit turned to loss came in the limelight. The company was able to maintain earnings in 3Q, and stock prices increased 10 percent due to impact from issuance of the company’s 4th convertible bonds in August. Despite of these developments, financial regulations required that over NT $300 million is to be recognized as loss on valuation of financial liability leading to non-operating loss increase to NT $281 million. Therefore, 3Q had a deficit of NT $834.22 million, single quarter EPS of NT $ -0.09 and EPS for three previous quarters of NT $0.02

Epistar 3Q consolidated revenue reached NT $5.754 billion, a quarterly decrease of 5.17 percent, but still had a yearly growth of 1.43 percent. The company had a gross profit of NT $926 million, a quarterly dip of 3.98 percent and annual increase of 22.32 percent. Gross profit margin reached 16.09 percent, a growth of 15.89 percent compared to 2Q and 13.34 percent from last year’s 3Q. However, in accordance with next year’s new product launch, the company has invested more in R&D in 3Q spurring 3Q consolidated revenue to reach 3.55 percent, a large drop from 1Q of 6.38 percent but still higher than last year’s 3Q of 2.82 percent. Operating income reached NT $204 million, a quarterly decrease of 47.18 percent and annual increase of 27.68 percent.

About Epistar Corp.

Epistar-logo[/caption]

Epistar Corp. is the largest manufacturer of light-emitting diodes (LEDs) in Taiwan.[1] The company was established in 1996, and its headquarters are in the Northern Taiwanese city of Hsinchu. In 2009 it had an annual turnover of NT$10 billion. Epistar specialises in high-brightness LED products, which are used in general lighting, traffic signals, and various consumer products such as mobile phones and laptop computers. The company supplies the LED backlighting for Samsung liquid crystal displays. It is the world’s largest manufacturer of red and yellow LEDs, and holds over 1000 patents.[1] It has a history of patent disputes with competitor Philips Lumileds over the use of AlInGaP LED technology. However in September, 2009, Philips Lumileds signed an agreement to license AlInGaP technology to Epistar.

Epistar 2013 Q3 financial results: Deficit NT $834.22 million, EPS NT $ -0.09

Taiwan LED Manufacturers Present Green Lighting Solutions at Indo LED & Lighting Expo in Jakarta

The 2013 Emerging Markets Campaign of Taiwan’s Green Trade Project Office has landed in Jakarta, Indonesia with a delegation of Taiwanese LED lighting manufacturers ready to showcase the latest innovations at the Indo LED & Lighting Expo scheduled to be held on November 6-9.

Indo LED & Lighting Expo

TAIPEI–(BUSINESS WIRE)–The 2013 Emerging Markets Campaign of Taiwan’s Green Trade Project Office has landed in Jakarta, Indonesia with a delegation of Taiwanese LED lighting manufacturers ready to showcase the latest innovations at the Indo LED & Lighting Expo scheduled to be held on November 6-9.

Indo-lED-lighting-expo-2013[/caption]

A ‘Taiwan Innovative LED Lighting Product Pavilion’ is set up for the fair in the Jakarta International Expo Center (Hall A2, Booth AK 010) to present a variety of LED lighting solutions offered by Taiwanese companies.

The Green Trade Project Office had previously organized exhibitions in Sao Paulo, Chongqing, Tianjin and Istanbul, aiming to enhance the overall brand visibility of Taiwan’s LED lighting products for further business opportunities in the aforementioned markets.

Li-Yen Ma, Division Chief of the Integrated Marketing Division at the Green Trade Project Office, said, ‘We have seen strong demand for energy-efficient products as well as diversified sources of energy in the emerging market segment, mainly boosted by the robust economic performance. Taiwanese companies can no doubt fulfill the needs. Taiwan has been the largest LED component manufacturer in the world, and has been lately expanding its business scope, serving global customers with innovative LED lighting solutions. The “Taiwan Innovative LED Lighting Product Pavilion” is intended as the first stop for buyers and visitors around the world to experience Taiwan’s quality products.’

Exhibitors at the ‘Taiwan Innovative LED Lighting Product Pavilion’ include TYC Brother Industrial, one of the world’s largest automotive lighting product makers; Aeon Lighting Technology, a leading high-power LED light manufacturer which had won the Red Dot Design Award and M Technology Award; Lei Yueh Enterprise, also an award-winning lighting solution provider holding several international design awards such as the IDEA, iF and Red Dot Design Awards; apm Communications of the Unimicron Group; Peng-Yun Technology; UBLeds; Hergy Lighting Technology; Eulife Technology; and Torch Industrial, presenting a wide range of LED lighting products.

Winner of the 2013 Taiwan Green Classics Award and iF Product Award, the BE Light from QisDesign combines form and light. Featuring a special hinge design, the BE Light can actually be folded down flat to a minimum height of 1.8 cm when not in use. Everlight Electronics, Taiwan’s leading LED maker and also a three-time winner of the Taiwan Green Classics Award, showcases its 8W LED light bulb line. The dimmer-free LED light bulb from BenQ is the winner of the 2012 Taiwan Green Classics Award.

The ‘Taiwan Innovative LED Lighting Product Pavilion’ is located at Hall A2, Booth AK 010. During the exhibition, the Green Trade Project Office will also hold the ‘A Touch of Light: Taiwan Products Launch’ conference on November 7, starting 14:00, in which five leading Taiwanese lighting solution designers, Lei Yueh Enterprise, Aeon Lighting Technology, apm Communications, Peng-Yun Technology and Jan Cheng Lighting Co., Ltd. (Dancelight), will present their latest technology innovations and lighting products.

Taiwan LED Manufacturers Present Green Lighting Solutions at Indo LED & Lighting Expo in Jakarta

Edison Opto Presents New High Voltage LEDs and Concept Modules at Hong Kong International Lighting Fair

Edison Opto Presents New High Voltage LEDs(PLCC 5630 HV Series, EdiPower II HM (COB) Series ) and Concept Modules(multifunctional AR111 module) at Hong Kong International Lighting Fair. Edison Opto is a Taiwan based global leading high power LED manufacturer.

The Taiwanese leading lighting manufacturer in LED market, Edison Opto, will participate in the attention-getting lighting event – Hong Kong International Lighting Fair and showcase their latest LED products which include PLCC 5630 HV Series, EdiPower II HM (COB) Series and multifunctional AR111 module.

Edison-new-high-voltage-LEDs-and-concept-modules

The Hong Kong International Lighting Fair (Autumn Edition) will gather more than two thousand exhibitors around the world to present the latest lighting products and industry updates. To answer this high profile lighting event, Edison Opto will introduce a series of new products. For example, PLCC 5630 high voltage (HV series) components, which attracted customers’ attention in 2013 Guangzhou International Lighting Exhibition, can decrease the complexity of circuit and mechanical design with 24V operating voltage. In addition, the compact sizes of PLCC 5630 HV series facilitate the optical and package design so that the volume and cost of luminaires can be dramatically reduced. At present, cool white and warm white are available, and the CRI of all series components are higher than 80. The PLCC 5630 HV series can be applied in LED light bulb and tube light as the light sources of residential lighting, commercial lighting and office lighting.

In addition, Edison Opto has been researching and developing COB products for seven years. Among Edison Opto’s COB products, EdiPower II HM series has extended from 5W to 40W for different applications. Furthermore, EdiPower II HM series is based on the mirror-like MCPCB which features excellent reflectivity (up to 98%). And that means the luminous efficacy of components can be increased by 10% to 30% compared with the conventional anodized versions. Under 1080mA, the HM series can reach 5190lm in cool white (equivalent to 130lm/W). Due to the substrate structure design, EdiPower II HM series can free from sulfuration and perform a better reliability in product usage. The CRI of HM series are higher than 80 (parts of the series have reach 90). The high performance HM series can be applied in many fields such as LEDs light bulb, down lights, track lights, residential lighting and commercial lighting fixtures.

In addition to the component development, Edison Opto also makes efforts in optical and module design. Recently, Edison Opto has introduced a multifunctional AR111 module, which using Edison Opto’s high uniformity collimated system and high efficacy COB LED (EdiPower HM). By integrating the advanced lens and reflector design, the AR111 module can provide superior light quality (with beam angle

Edison Opto will be exhibiting at 2013 Hong Kong International Lighting Fair from 27 October to 30 October, 2013, in Hong Kong Convention and Exhibition Centre. To answer this high profile lighting event, a brilliant stand dedicated to LED lighting technology and unique LDMS lighting design solution service will be constructed to exhibit an astonishing array of power LEDs and SSL (solid state lighting) applications. Please come to visit us at booth 5C-C02 in Hall 5, and experience the latest developments in LED lighting technologies.

About Edison Opto:

Edison-Opto_logo

Edison Opto Corporation (Traditional Chinese:艾笛森光電股份有限公司; pinyin:Ai Di Sen Guang Dian) is a Taipei, Taiwan based global leading high power LED manufacturer, established in October, 2001. Edison Opto Corporation is principally engaged in the research, manufacture and distribution of high power light emitting diodes (LEDs). Edison Opto’s major products include high power LED components and modules, applied to lighting equipment, such as portable products lighting, special lighting, building lighting, commercial lighting and outdoor lighting; Datalink, used as digital music and signal transmission interface for acoustic systems, mobile phones and personal computers (PC) mainboards, and opto sensors, applied for digital cameras and personal digital assistants (PDAs), among others. In 2011, Edison Opto created the LDMS service program, which integrates the four essential technologies in LED lighting applications (Thermal Management, Electrical Scheme, Mechanical Refinement and Optical Optimization).In aspect of quality policy, Edison Opto established a photometric testing laboratory which was certified by UL as a LM80 approved and product safety testing laboratory.

Edison Opto has established the headquarters in New Taipei City, Taiwan since 2001. Edison Opto is specialized in designing and producing High-power LEDs. In order to satisfy customers’ high standard requests for quality, Edison Opto established a LM80 approved laboratory which is certified by Underwriters Laboratories (UL). Edison Opto creates the LDMS service program which can provide customized professional design and production services. Edison Opto has established factories in Dongguan and Yangzhou. Besides, in order to expand the service domain, Edison Opto has established subsidiaries in USA and Germany. Edison Opto provides customers with complete product support and prompt delivery services.

More Information about the company and our products can be found at www.edison-opto.com

Edison Opto Presents New High Voltage LEDs and Concept Modules at Hong Kong International Lighting Fair

Epistar chairman: consolidation among Taiwan- and China-based LED chip makers by 2015

Epistar chairman Lee Biing-jye says there will be consolidation among Taiwan- and China-based LED chip makers by 2015. Reshuffling in the LED chip manufacturing industries in Taiwan and China through merger may happen faster than originally expected and larger makers will merge with smaller...

consolidation-among-Taiwan-and-China-based-led-chip-makers

Epistar chairman Lee Biing-jye says, “there will be consolidation among Taiwan- and China-based LED chip makers by 2015.”

Reshuffling in the LED chip manufacturing industries in Taiwan and China through merger may happen faster than originally expected and larger makers will merge with smaller ones, leaving only two Taiwan-based makers and three China-based makers by 2015, according to chairman Lee Biing-jye of Epistar.

As continued improvement in technology keeps decreasing production costs, prices for LED chips are estimated to drop by 10% each year in the near future, Lee said. In addition, progressive development of LED chip technology is likely to reduce room for LED packaging and thereby lead to LED chipmakers merging with packaging houses, Lee pointed out.

Epistar has set aside funds for vertically combining LED packaging houses and/or downstream LED product makers through a stake investment over the next three years, Lee indicated.

Epistar suffered a net loss of NT$1.117 billion (US$38.5 million) in 2012 due to non-operating net losses of about NT$2.0 billion from stake investment in fellow maker Huga Optotech, Lee noted. However, Epistar expects 2013 business operation to turn profitable.

Epistar expects capital expenditure of NT$3.0 billion in 2013 and will set aside a larger budget for 2014, Lee said. Epistar plans to add 30 MOCVD sets in 2014, Lee indicated.

Epistar chairman: consolidation among Taiwan- and China-based LED chip makers by 2015

Taiwan LED Manufacturers move to special lighting market to maintain Earnings in Q4 2013

Taiwan LED chips and package manufacturers were affected by decreased backlight shipments, and their were down 1% to US$374 billion in Sept. 2013. Price competition in the white light market forced some of them move to special LED lighting market e.g. UV LED, IR.

Taiwan-LED-manufacturers-to-maintain-earnings-in-q4-2013

Taiwan LED chips and package manufacturers were affected by decreased backlight shipments, and their were down 1% to US$374 billion in Sept. 2013. Price competition in the white light market forced some of them move to special LED lighting market e.g. UV LED, IR.

Some Taiwanese LED manufacturers were affected by decreased backlight shipments, which lead to a clear drop in September revenues, according to LEDinside, a green energy research subsidiary of Trendforce. Korean manufacturers still have plans to increase direct-type LED TV shipments, and with 2014 Chinese Lunar New Year holidays starting in January, fourth quarter revenue performance is hoped to benefit from increase in new product stockup, observed LEDinside.

Listed Taiwanese manufacturers total revenue was down 1 percent to NT$11 billion (US$374 billion) in Sept. 2013. Among these companies, Taiwanese LED chip manufacturers’ revenue reached NT$3.7 billion, and Taiwanese packaging manufacturers revenue was about NT$7.2 billion.

LED chips and package manufacturers revenue performance was polarized. Affected by decreased backlight market demands, AlINGaP LED and IR market performances remained stable, while 3Q revenues dipped. Benefiting from Korean manufacturers’ plans to increase direct-lit TV shipments, and upcoming Chinese Lunar New Year holidays; manufacturers that have entered into the Korean supply chain, such as chip manufacturer Epistar revenue performance was stable for September and reached NT$ 1.87 billion. In addition, the display market performance was good due to World Cup 2016 lighting demands. Furthermore, steady IR orders and AlINGaP LED chip manufacturers including Epistar and Optotech had stable performance, with September revenue for Optotech reaching NT$540 million.

LED packaging manufacturers’ revenue performance was polarized. Some manufacturers benefited from lighting and smartphone application demands had stable revenue growth. However, performance for manufacturers focused more on TV backlight fell short of expectations. Low TV backlight demands continued to affect September revenues of companies including Lextar and Unity Opto. Benefitting from OEM orders by Nichia, Foxconn revenue had a steady growth of 4.6 percent reached NT$690 million. With Liteon’s vertical integration advantages, the company showed steady development in markets for lighting products, street lamps, and automotive lighting. LED lighting components benefited from successful production capacity and global lighting brand client demands, with September revenue yearly growth up nearly 20 percent. Due to increased North American and Taiwanese LED street lights market energy saving demands, monthly revenue grew w 40 percent propelled by smooth flow of orders. At the same time, automotive lighting September revenue growth continued to push sapphire substrate LED industry revenue yearly growth up 10%.

However, current price competition in the white light market has become fiercer. More packaging manufacturers have begun to switch their aim towards more profitable products, such as special application field which includes UV LED, IR, and more. Although these types of products have a limited market scale, and closed supply chain. Considering profitability, though, each packaging manufacturer has started strategic deployment in this special lighting market.

Taiwan LED Manufacturers move to special lighting market to maintain Earnings in Q4 2013