LED lighting, as a green light source, indeed shows huge development outlook, due to the characteristic of energy-saving as well as policy support from worldwide countries; but just because of the bright future, the global LED lighting market falls into gloomy situation, and suppliers in the line, especially those from Taiwan and Chinese Mainland, are facing ever more severe competition. This situation might force some companies, sooner or later, to withdraw from the market. The industry forecasted that around 30% of the LED lighting companies in the greater China area would shut down or merge within three years.
Thanks to the proliferation of small and medium-sized LED lighting manufacturers since the early 2000s, the most severe oversupply problems have been experienced in the field of low- to medium-priced products. The manufacturers of those products may be the first to be forced out of the market.
"For LED lighting companies in China, the end of the high-profit period has come and 2013 will usher in a new era of domination by slim-profit operational strategies," said the Topology Research Institute.
Another brewing trend for the greater China market is the strengthening of cooperative links between Taiwanese and Chinese mainland companies for the joint development of the LED lighting market in China, where the Beijing government has instituted measures to boost sales of this new-generation lighting under its green-industry policy.
The announcement in November 2012 of a merger between San'an Optoelectronics, the largest MOCVD (Metal Organic Chemical Vapor Deposition in Chinese mainland, a key upstream material for LED bulbs) maker, and Formosa Epitaxy Inc., Taiwan's second-largest MOCVD maker, came as no surprise to industry observers. For LED companies on the two sides of the Taiwan Strait, this merger will set an example of the integration of resources for strengthened competitiveness not only in the greater China area, but also in the worldwide market.
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
While no one really can accurately predict the future, we can take guidance from another Drucker saying which is the best way to predict the future is to create it.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.