ITRI Backs Plan to Build Intelligent LED Lighting Systems Via Alliance

Backed by an official contract to lay a solid foundation under the "intelligent LED mood lighting sector" in Taiwan within four years, J.H. Chang, manager of Technology Center for Service Industries under the Industrial Technology Research Institute (ITRI), recently organized approximately 13 Taiwan-based manufacturers from all segments of the LED-lighting industry to form an alliance.

This LED lighting system is noted for computer-programmed changes of light intensity and colors. Chang plans to upgrade such sophistication within four years-to enable such color and intensity changes via wireless remote.

"After surveying this sector for two years, I saw an excellent niche market that calls for a team effort," says Chang, whose observations show that the business would be potentially profitable for volumes are small but specifications diversified-which ideally suits the production modes in Taiwan. "Above all, few such makers exist worldwide and industrial standards have yet to be set up. Besides, world-class players don't mind the rivalry for small volume but big variety orders are simply too troublesome to fill," he adds.

Chang was contracted by the Small and Medium Enterprises Administration (SMEA) of the Ministry of Economic Affairs (MOEA) to survey the market and organize the team of manufacturers from the LED lighting fixture and LED lamp, sensor-based controller, wireless-device, lighting-design, and thermal-dissipation sectors. "To minimize conflict-of-interest, we deliberately chose members with complementary specializations," Chang explains.

SME-limited Membership

Membership in the alliance is limited to SMEs capitalized below NT$80 million (US$2.5 million at US$1:NT$31) or with less than 200 employees. "Unlike their larger domestic peers, these manufacturers are usually financially weak, which hamstrings their R&D," Chang says.

The SMEA aims to seed the island's intelligent LED lighting industry with the above-mentioned alliance, with five more alliances being planned for other industries as precision optical components, hi-performance flow controllers, high-value-added auto lamps, and bio materials. "The four-year plan includes introducing innovative products, increasing revenue generated by the industrial sector, building brands, and marketing products overseas," Chang says.

Chang projects the alliance to generate combined NT$300 million (US$9.6 million) in revenue in the first three years of the plan, backed by an estimated NT$120 million (US$3.8 million) in investment from the government and alliance members.

The alliance plans to design intelligent LED lighting system for conference rooms as the first target, which is a sound strategy for some 28,000 enterprises that exist on the island with 10-20 person conference rooms. "Such a lighting system also works well in homes, museums and art galleries; not to mention outdoor applications as lighting for walkways, landscapes, scenic sites and bicycle paths," says Chang.

The success of the alliance hinges on synergy, cooperation, willingness to share expertise, and the right chemistry among members, stresses Chang. "Taiwan makers need a third-party as intermediary for various reasons, the manufacturers need a third party to act as buffer, lubricant, leader and bonding agent to enable the projects, with the ITRI playing such role," the project manager says.