Nan Ya Photonics Inc (南亞光電), an LED chip manufacturer, yesterday said it has completed a fully automated production line that can generate more than 4 million LED bulbs a year.
The company is a 50-50 joint venture between Nan Ya Plastics, the nation’s largest plastics maker, and Epistar Corp (晶元光電), the nation’s largest LED chipmaker.
Nan Ya chairman Wilfred Wang (王文潮) yesterday said the nation’s demand for LED bulbs is between 1.5 million and 2 million units a year.
As the new plant located in New Taipei City (新北市) can produce more than 400,000 LED bulbs a month, he is confident Nan Ya’s output can meet domestic demand.
“The main purpose of building a fully automated production line is to lower labor costs, which account for 4 percent of our total production costs,” Wang told reporters at a press conference.
“The new automated production line will help the company solve labor issues and lower our products’ defect rate, which occurs mainly because new workers lack experience,” Wang said.
With the new production line, the company hopes to better monitor the production process to improve the quality of products, he said.
Wang said the company will offer more incentives to attract more consumers to buy LED bulbs and increase its penetration rate.
“LED bulbs can save about 40 percent of energy costs for households and do not have ultraviolet light, but there are still many people unaware of them. In order to make our products more attractive to consumers we will try to lower retail prices of LED bulbs to less than NT$200 per unit,” Wang said.
Currently, Nan Ya’s 7-watt and 10-watt LED bulbs are priced at NT$399 and NT$680 respectively.
Other companies have already cut their bulb’s prices to attract consumers.
Delta Electronics Inc (台達電), the world’s largest switching power supplier, sells 8-watt LED bulbs for NT$399 each in local 7-Eleven stores, while LED chip packager Everlight Electronics Co (億光) markets its 8-watt LED bulbs under the Everlight brand at NT$299 in 7-Eleven stores through special promotion packages and at NT$469 in Carrefour outlets.
Meanwhile, Wang called on the government to speed up the process of establishing new rules to standardize LED product specifications to protect consumers.
He said Nan Ya’s new automated production line has demonstrated that manufacturing skills for LED bulbs have advanced, but further integration and collaboration with large foreign firms that have more expertise is still needed.
He called on the government to help the industry expand into the global market.
Nan Ya’s new automated production line manufacturers 7-watt and 10-watt LED bulbs only. The company, based in New Taipei City’s Shulin District (樹林), said it was planning to ship products to the US, China or Japan next year to increase its market share.
To boost sales, Nan Ya said beginning today consumers can purchase the company’s 7-watt and LED bulbs at a cost of NT$199 at Carrefour and E-Life Mall Corp (全國電子) outlets.
The promotion will last through Lunar New Year holidays.