Delta Electronics Inc (台達電), the nation’s biggest supplier of power supply units, expects its new LED lighting business to become profitable this year, benefiting from growing use of LED lighting products.
The company is also shifting its focus to developing total LED lighting solutions from just making LED bulbs amid constant price decreases, Delta Electronics chairman Yancey Hai (海英俊) told reporters on the sidelines of the annual LED lighting show in Taipei.
“LED lighting is the trend as prices continue to fall,” Hai said. “There are too many [LED bulb] suppliers. We are differentiating our products by providing total solutions.”
A TrendForce Corp report says global prices of LED bulbs equivalent a 40 watt fluorescent bulb have declined 21 percent in a year to US$15.3 per unit last month.
“Last year, our LED lighting business was still in the red. This year, it will start to eke out a profit,” Hai said.
In November last year, Delta clinched a major smart lighting control deal worth 2.7 million yuan (US$433,555) in China by providing a system for street lamps in Guangdong Province.
The company also makes LED bulbs for customers in Japan and Europe, and sells its own-branded LED bulbs.
The global lighting market is expected to grow to 9 million euros (US$12.5 million) in 2020, with 57 percent of the market LED lighting and smart lighting control systems, said the Taiwan External Trade Development Council, one of co-organizers of the annual Taiwan International LED Lighting Show, citing a forecast by Philips Lighting.
LED chipmaker Epistar Corp (晶電) chairman Lee Biing-jye (李秉傑) said yesterday he is optimistic about the LED industry this year, on the back of rising LED lighting penetration and growing demand for new ultra-high-definition 4K2K LED TVs.
In Japan, the penetration rate of LED lighting is expected to rise to 70 percent this year from last year’s 50 percent, Lee said.
In the US, the world’s biggest LED lighting market, the penetration is set to increase to 20 percent this year from 10 percent last year, he said.
Global LED lighting penetration will rise to 50 percent in 2017, he added.
Epistar posted a net profit of NT$74.55 million (US$2.44 million) last year, recovering from a net loss of NT$1.12 billion in 2012, and the company’s board decided to pay a cash dividend of NT$0.45 per share, the company said in a stock exchange filing on Wednesday.
Revenue grew 11.6 percent to NT$22.24 billion from NT$19.93 billion in 2012.
Lee said LED lighting revenue would account for 35 percent of the company’s overall revenue this year, without elaborating.