Electricity Rate Hikes Boost Taiwan's LED Lighting Market

Taipei, April 18, 2012 (CENS)--Taiwan's enterprises are increasing installations of LED lamps to counter the upcoming implementation of new electricity rates, providing a big boost to the island's LED industry, according to LED manufacturers.

The government announced that beginning May 15 the island's electricity rates for the manufacturing industry will be hiked by 35%, the rates for commercial sites will be raised by 30% and rates for households will increased by 11%.

Taiwan's LED-lighting manufacturers said they have landed considerable orders from the island's manufacturers, prompting them to increase orders to LED chipmakers. The lighting manufacturers include Delta Electronics Inc., Everlight Electronics Co., Ltd., Edison Opto Corp., Lextar Electronics Corp.

Industry executives pointed out that Everlight and Delta LED lamps are already out of stock at several hyper marts on the island while Edison, Lextar and Unity Opto Technology Co., Ltd have received millions of NT dollars of contracts for LED light tubes from enterprises.

Unity Opto Chairman Alpha Wu pointed out that the orders have kept swarming into his company after the government announced the power rate hikes. This week alone, he reported, the company landed an NT$30 million (US$1.03 million at US$1:NT$29) order for 50,000 LED light tubes. He said such heavyweight buyers are lining up for the lamps.

Brisk demands are estimated to boost Unity's revenue for April by 20% from March and its revenue for the second quarter by 50%.

A ranking official of a local LED manufacturer said a residence community cut down electricity bill of its public facilities to only NT$50,000 (US$1,724) a month from NT$130,000 (US$4,482) after installing LED lamps.

Edison executives estimated that robust orders will considerably ramp up the company's capacity utilization rate for the second quarter. He added the company is shifting product emphasis to indoor lighting from outdoor lighting and will increase indoor lighting to account for 60% of the company's total sales by the end of this year.

Everlight has snatched up over 50% of local market for branded LED light bulbs.

Strong market has driven up capacity utilization rate at chipmakers including Epistar Inc. and Formosa Epitaxy Inc.