Neo-Neon Holdings Ltd (真明麗控股), a Guangdong, China-based decorative light manufacturer founded by a Taiwanese, Ben Fan (樊邦弘), yesterday said it planned to expand its output seven-fold over the next three years.
“We plan to install 30 additional units of metalorganic chemical vapor deposition [MOVCD] systems in the next three years at our Yangzhou plant’s advanced light-emitting-diode [LED] production lines,” company chairman Fan told a media briefing in Taipei yesterday.
The plan would require a capital commitment of about US$30 million, the company said in Hong Kong earlier.
Neo-Neon, the world’s largest manufacturer of decorative lighting products with a 50 percent market share, currently operates five MOVCD systems with a monthly output of between 10,000 and 12,000 wafers, which can be used to produce 500 million units of decorative lighting products.
At full capacity, the 30 additional units will be able to produce between 60,000 and 72,000 wafers a month, which translates into a minimum of 3 billion units of decorative lighting products, the chairman said.
“We will take up half of the [wafer] output to support our own production [of decorative lights] and sell the remainder on the market,” Fan said, adding that he was confident the demand for non-decorative LED lighting would pick up soon.
If costs could be reduced by half, LED lighting products could easily expand their share, currently around 0.6 percent, of the global market for lighting products, estimated to be worth US$129 billion next year.
“That will translate into more than US$100 billion in new business opportunities for LED producers,” CEO Kris Tseng (曾金穗) told a media briefing yesterday.
After securing orders for more than 30,000 LED street lamps from several Chinese cities, the company is hoping to increase its share of the China market from 10 percent to 30 percent, Fan said.
The company also plans to tap into the LED backlight market for use in notebooks, TVs and monitors as well as automobiles.
To fund its expansion, Neo-Neon plans to raise NT$2.06 billion (US$64 million) via the issuance of 140 million shares of Taiwan depositary receipts next week at NT$14.7 apiece, its underwriter Fubon Securities Co (富邦證券) said yesterday.
Hurt by the global slump, the firm posted revenues of HK$554 million (US$71.5 million) in the first half of this year, down 23 percent from a year ago. Net profit was HK$42.3 million.
CAUTIOUS RECOVERY: While the manufacturing sector returned to growth amid the US-China trade truce, firms remain wary as uncertainty clouds the outlook, the CIER said The local manufacturing sector returned to expansion last month, as the official purchasing managers’ index (PMI) rose 2.1 points to 51.0, driven by a temporary easing in US-China trade tensions, the Chung-Hua Institution for Economic Research (CIER, 中華經濟研究院) said yesterday. The PMI gauges the health of the manufacturing industry, with readings above 50 indicating expansion and those below 50 signaling contraction. “Firms are not as pessimistic as they were in April, but they remain far from optimistic,” CIER president Lien Hsien-ming (連賢明) said at a news conference. The full impact of US tariff decisions is unlikely to become clear until later this month
Popular vape brands such as Geek Bar might get more expensive in the US — if you can find them at all. Shipments of vapes from China to the US ground to a near halt last month from a year ago, official data showed, hit by US President Donald Trump’s tariffs and a crackdown on unauthorized e-cigarettes in the world’s biggest market for smoking alternatives. That includes Geek Bar, a brand of flavored vapes that is not authorized to sell in the US, but which had been widely available due to porous import controls. One retailer, who asked not to be named, because
CHIP DUTIES: TSMC said it voiced its concerns to Washington about tariffs, telling the US commerce department that it wants ‘fair treatment’ to protect its competitiveness Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday reiterated robust business prospects for this year as strong artificial intelligence (AI) chip demand from Nvidia Corp and other customers would absorb the impacts of US tariffs. “The impact of tariffs would be indirect, as the custom tax is the importers’ responsibility, not the exporters,” TSMC chairman and chief executive officer C.C. Wei (魏哲家) said at the chipmaker’s annual shareholders’ meeting in Hsinchu City. TSMC’s business could be affected if people become reluctant to buy electronics due to inflated prices, Wei said. In addition, the chipmaker has voiced its concern to the US Department of Commerce
STILL LOADED: Last year’s richest person, Quanta Computer Inc chairman Barry Lam, dropped to second place despite an 8 percent increase in his wealth to US$12.6 billion Staff writer, with CNA Daniel Tsai (蔡明忠) and Richard Tsai (蔡明興), the brothers who run Fubon Group (富邦集團), topped the Forbes list of Taiwan’s 50 richest people this year, released on Wednesday in New York. The magazine said that a stronger New Taiwan dollar pushed the combined wealth of Taiwan’s 50 richest people up 13 percent, from US$174 billion to US$197 billion, with 36 of the people on the list seeing their wealth increase. That came as Taiwan’s economy grew 4.6 percent last year, its fastest pace in three years, driven by the strong performance of the semiconductor industry, the magazine said. The Tsai