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San'an Opto and Epistar take more than 50% of China LED chip market share, says LEDinside

Alex Wolfgram, DIGITIMES, Taipei [Wednesday 21 May 2014]

The LED chip market reached CNY9 billion (US$1.45 billion) in China in 2013, up 16% on year, according to LEDinside. Spurred by lighting market growth momentum, the LED chip market demand further increased resulting in expanded market size. However, continual price drops caused LED chip market revenue growth to lag behind volume growth.

San'an Opto and Epistar's combined LED chip market share in China is about 51%. San'an Opto's revenue share constitutes more than 40% of China manufacturers' total revenues, while Epistar's LED chip revenues amount to 80% of all Taiwanese LED chip exports to China.

Manufacturers continue to encounter difficulties in raising profitability, with many small- to medium-size manufacturers caving under financing pressure. Some of those manufacturers have exited the market, due to difficulties in maintaining client relationships, and lack of technological breakthroughs. San'an Opto, a representative of large manufacturers, however, is currently actively expanding production capacity, the firm said.

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