Everlight Electronics Co (億光) on Tuesday gave a reserved outlook for this year amid intensifying competition from Chinese rivals.
LED manufacturers are not expected to fare as well as DRAM makers or shake their reputation for being as unprofitable as display panels and solar power, Everlight chairman Robert Yeh (葉寅夫) told reports at a gathering in Taipei.
Although the Chinese government has announced cuts to subsidies that have been propping up its LED makers, Taiwanese companies are likely to see continued downward pressure on prices, he said.
That is because Chinese firms are expected to continue with planned capacity expansions, as they have already purchased the equipment, he said.
“Despite the subsidy cuts, the Chinese government is likely to continue its support through other means, such as the capital market, if these firms gain listings on the country’s stock exchanges,” Yeh said.
“Under the same circumstances as their Taiwanese rivals, some of those Chinese companies would have folded already,” Yeh said.
Recent reports about questionable accounting practices at Sanan Optoelectronics Co Ltd (三安光電), China’s largest LED maker, have provided little respite for Taiwanese companies.
Like many other Taiwanese LED makers, the nation’s leading LED chip packager and tester would focus this year on its small pixel pitch LED products, which are approaching the same level of performance as Mini LEDs, he said.
Pursuits of niche markets such as infrared LEDs and product differentiation are easier said than done, he added.
Mini LED and Micro LED technology uses a larger number of smaller LED clusters in a display panel or lighting unit.
Everlight last week showcased its new automotive rear lamp prototype, which features its small pixel pitch solution, at the NEPCON Japan trade show in Tokyo.
The prototype also serves as a display, with 27.63 pixels per inch for customized content.
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