Taiwanese LED Packaging Companies Respond to the Trade War by Adjusting Their Product Mix

Taiwan-based LED packagers Edison Opto and Bright LED Electronics (BRTLED) have reported their strategies in response to the price competition of LED products and the impacts of trade war.

Edison manufactures high-power LED packages for lighting and backlight applications targeting Asia, Africa and other emerging markets. The company has been adjusting its product portfolio by lifting its lighting module shipment, reducing TV backlight and pushing automotive lighting to boost profits and lessen the impacts of price competition.

(Image: Edison)

Automotive lighting is one of the company’s focal points. Edison has become part of the supply chain of automotive lighting OEMs since the end of 2017 and increased the business share of automotive lighting to 25-30 percent. The company plans to raise the share to more than 30 percent by 2019.

BRTLED has reported a 15 percent YoY decrease in its revenue from January to August due to the falling price of LED and decreasing streetlight projects. With the escalating trade war between the U.S. and China, the company expects that its revenue will remain tepid in the second half of 2018.

Around 45 percent of BRTLED’s revenue comes from visible LEDs with applications including automotive components and gaming products. The company also produces invisible LEDs applied in sweeping robots, smart home applications and industrial sensing products. Invisible LEDs account for another 45 percent of BRTLED’s revenue and the remaining 10 percent is from street light projects.

Despite the fact that only 10 percent of its revenue comes from the U.S market, BRTLED might still be influenced by the trade war, as many international brand might cut down their orders to Chinese manufacturers because of the upcoming 25 percent tariffs.

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