Strategies of Global LED Manufacturers during Challenging Time in the Industry [Part 2]

Facing the difficulties in the industry, global LED companies developed their strategies trying to keep their business prospering. LEDinside analyzed the different approaches of worldwide LED manufacturers.

For Taiwanese LED manufacturers, Micro LED and Mini LED technologies have directed them into a new field where they have a better chance to rival with competitors from China and Korea. Korean and Japanese LED suppliers, on the other hand, target niche products for novel applications such as UV LEDs and LEDs with wavelengths that are similar to naturel light.

On the other side of the planet, LED producers from the U.S. and Europe have their own ways to deal with the soft LED market. And the biggest LED player, China, also sees challenges in the industry.

Europe and US based LED Company to Focus on High Technology Product and Applications

LED companies from Europe and US including Osram, GE and Cree have sold their lighting business in the past two years after business restructure as most of them did not profit from LED lighting business anymore.

Osram made an attempt to transfer into a high tech photonic company focusing on semiconductor, advanced automotive applications and digital lighting management. However, the German company continues to suffer from weak business performance since the second half of 2018. Osram is current under negotiation with Austria AMS for public transmission.

(Image: Osram)

Cree also completed the sale of its lighting business to Ideal Industries in 2019 to concentrate on its Wolfspeed business. The company aims to become a semiconductor powerhouse in silicon carbide and GaN-on-silicon-carbide technologies.

Chinese LED Companies Business Drop due to Trade War and Oversupply

Despite that Chinese LED companies have continued to receive subsidies from the government, they also struggle in the sluggish market and some companies are facing drastically business drop.

With government subsidies, most Chinese companies have to continue expand their production capacity regardless the oversupply market. These over capacities continue to lower the price of LED products and lead to business drop to Chinese companies as well.

(Image: Pixabay)

To fight against business decline, leading Chinese LED companies such as Sanan Optoelectronics, HC SemiTek, Changelight and others have been transforming their business core to niche products with advanced technologies. Some of them also began developments in Micro LED and Mini LED technologies.

 

Related reading:

Strategies of Global LED Manufacturers during Challenging Time in the Industry [Part 1]

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