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Taiwan Japan LED makers to face price competition from China says Nichia executive

Time:2016-06-03 Hits:103 Compile:SNL

China-based LED makers have been rapidly developing their operating scale and technological capability and are expected to pose price pressure for Taiwan- and Japan-based makers in 2015, according to chief legal and intellectual property officer Katsuyuki Akutagawa for Japan-based Nichia.

China-based LED makers' rapid development has been due to advantages over equipment costs thanks to government subsidies for MOCVD procurement, and the recruitment of many R&D engineers from Taiwan, Akutagawa said. As a result, China-based LED makers have rendered South Korea-based makers less price competitive and will offer products of comparable quality at lower prices to compete with Taiwan- and Japan-based makers in 2015, Akutagawa indicated. Mainly due to China-based makers' price competition, prices for packaged LED devices in 2015 will drop 15-20% on year, Akutagawa noted.

To cope with price competition from China, Nichia will strengthen R&D, hike production efficiency, and offer more high-performance products, Akutagawa said.

Regarding the long-standing patent infringement ligation with Taiwan-based LED packaging service provider Everlight Electronics, Nichia is inclined to settle the dispute through negotiation, Akutagawa indicated.

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