Search Results

Search Results

keyword


Sort by


Date Range

Resource Types


Research Fields


Filter by Keyword(s)




keyword:Roger Chu27 result(s)

Press Releases
GO Scale Capital Buys 80.1% Stake of Lumileds and Changes the Competitive Landscape of the Global LED Industry, TrendForce Reports

2015/04/01

LED

On March 31, a consortium of investors led by GO Scale Capital announced they have bought LED manufacturer Philips Lumileds from its parent company Royal Philips Under this agreement, GO Scale Capital will pay Royal Philips US$33 billion for an 801% stake in its automotive lighting and LED components business, and the remaining 199% stays under Royal Philips The transaction is scheduled to wrap up in the third quarter of 2015, pending regulatory approval and ratification of transaction terms Following the deal, the LED and automotive business will operate under the name “Lumileds”  “Philips Lumileds is the leader in flip-chip technology that makes high-power LED products possible,” said Roger Chu, research director for LEDinside, a division of TrendForce “However, LED lighting market in general has shifted toward products of lower prices, so most LED luminaire companies prefer to use the standard and mid-power LED components because of their cost advantage”  With standard/mid-power LED being priced competitively, the growth of high-power LED have slowed As a result, Lumileds has been under the pressure of losing market shares Furthermore, Lumileds faces immense challenges The rise of Asian LED manufacturers led by Chinese companies and the expiration of the YAG white-light LED patent in 2017, for examples, are serious cost problems that Lumileds needs to address When the lighting business was under Royal Philips, there had been efforts to outsource the manufacturing to Asia However, the LED market ultimately has been too competitive for Philips Lumileds to make a turnaround, and its parent company made the decision to sell based on Lumileds’ sliding revenue  Chu provides two important points in his assessment of the impact that the Lumileds’ acquisition by GO Scale Capital has on the LED industry:  1 Chinese LED manufacturers have a chance to resolve patent issues and enter overseas markets  Lumileds is one of the five major IP holders in the LED industry The acquisition also provides the company an additional 600 patents from Royal Philips In the future, Lumileds will be able to license its vast patent holding in order to boost its operating results Chinese LED manufacturers will also be able to break through the patent barriers surrounding the foreign markets With Chinese investors having the controlling stake in Lumileds, China-based companies will have a greater voice when it comes to resolving patent issues and establishing their presence in the global LED market  2 GO Scale Capital consolidates its resources and provides Lumileds more strategic partners  GO Scale Capital has made a series of investments in companies positioned on the LED supply chain: Lattice Power (epi wafer), TimesLED (epi wafer), ShineOn (package), SunSun Lighting (LED luminaires), and Alighting (LED luminaires and heat dissipation) Once Go Scale Capital has the controlling stake in Lumileds, it may consolidate all its industry-related interests, inserting its new acquisition into the supply chain  In the past, Lumileds focused on high-power LED production; and when facing the rise of standard and mid-power LED in the market, Lumileds outsourced its manufacturing like other European and American LED companies LEDinside expects that this cost-saving measure to continue as Lumileds gains strategic partners in China after the takeover

Press Releases
TrendForce: LED Manufacturers will Uplift the Technology Entry Level and Find New Applications in Hopes to Raise Profitability in 2015

2014/12/15

LED

For many LED manufacturers, 2014 has been a challenging year A lot of manufacturers’ performance in first and second half of the year was very polarized Lighting market demands were stronger than expected in the first half of 2014, leading to a period of LED supply shortages, said Roger Chu, Research Director of LEDinside, a research division of TrendForce Despite the positive development, the industry was impacted by clients double booking and distributors rising inventory levels during second half of the year Many manufacturers were impacted by the markets cooling demands, and price competition as a result Worth noting, the emergence of Chinese LED manufacturers led to sliding LED product prices Hence, LED manufacturers will raise technology entry levels and find new applications in hopes to raise profitability in 2015  Below are top five industry trends LEDinside has highlighted to watch out for in 2015  (1) Chinese LED manufacturers market shares grow, big manufacturers become even larger  LEDinside estimates globally 239 new MOCVDs were installed in 2014 Some local governments will continue to issue subsidies in China throughout 2015, therefore, more than 170 MOCVDs are expected to be newly installed in China Overall, LED manufacturers expansion projects depends on local governments subsidies, hence LED chip manufacturers will grow  As Chinese LED chip manufacturers improve their technology and scale up production capacity, China’s LED chip production capacity has increased from 27% in 2013 to 36% in 2014 In the past, Chinese LED backlight and lighting applications largely relied on Taiwanese or international LED manufacturers, but this is no longer the case Due to Chinese package manufacturers increasing usage of domestic LED chips, prices are increasingly competitive, leading to Chinese manufacturers growing market share in the global LED industry    (2) LED lighting clients continue to seek low cost solutions  Spurred by falling product prices, high LED lighting market demands have emerged LED bulbs remain the main growth drivers for LED lighting products in 2015, including LED bulbs, tubes and other light source products, said Chu Therefore, LEDs retail price and costs are often the main factors taken into consideration  Standard and mid-power LEDs with good C/P ratio often meet these LED lighting products lower price demands, for instance 3030 and 2835 LEDs have become mainstream on the market Future LED manufacturers will continue to find better heat dissipation material, and use high driving currents to reduce the number of LEDs Even COB LED has gradually attracted attention from lighting manufacturers Besides lower LED prices, LED lighting manufacturers have also turned their focus to drivers and other components, in hopes of designing total solutions to lower costs  (3) Finding special niche applications to raise profitability  Due to intense LED price competitions, LED manufacturers hope to find new applications to raise profitability For instance, invisible LED lights including UV or IR LEDs are gradually valued by LED manufacturers Invisible LED light market remains a niche market, and cannot compare with LED lighting or backlighting application volumes The market sector has a much higher entry level, due to technology difficulties, customized demands, and close cooperation with system manufacturers Therefore, invisible LED products gross margin is markedly better than white LED  (4) Growing automotive LED market value, exterior automotive lighting market showing highest growth  Automotive LED market grew steadily, with automotive Daylight Running Lamps (DRL) and high/low beam lights showing most significant growth This is mainly due to automotive LED affected by LED technology advancement and the drop in LED price, has gradually shifted from high class car models to middle class models, which has spurred automotive lighting demands in the next few years Additionally, car panels remain the largest LED backlight application in cars Accompanying the spread of multimedia and image sensors, traditional panels have all been changed to LCD panels to spur automotive backlight demands  (5) Mobile phones become thinner, smartphone backlight LED specs turn towards 04t  Many manufacturers are trying to upgrade backlight LED specs to come out of price competition In the case of handheld devices, high-end smart phones are becoming thinner, with increasingly higher panel resolutions This challenges LED manufacturers to make thinner and brighter LEDs in 2015 Currently, high-end smartphones are using 04t LED as major backlight specs with brightness between 2,500-2,700 mcd In 47”iPhone 6, 10-12 LEDs are used in the backlight modules, since 04t and 06t LEDs have become thinner, and are the slimmest LEDs in the mass produced backlight market Package technology on the other hand has a much higher technology entry level Korean and Japanese LED manufacturers, such as Nichia, have been the main suppliers for this technology Furthermore, the 04t LED has been introduced into iPhone 6 backlight, and will even shift towards the thinner 03t LED in the future  As for TV LED backlight specs, raising LED brightness to satisfy 4K2K panel demands, and the introduction of NTSC 100 highly color gamut will also become a development focus for LED manufacturers All in all LED manufacturers will have to figure out ways to upgrade the entry level to have an upper hand in the price war 

Press Releases
TrendForce: LED packaging market to expand just 3.2% in 2015

2014/10/27

LED

The LED packaging industry’s value is anticipated to only rise an estimated 32% on-year in 2015, from this year's US$146 billion to US$15 billion, according to the latest “Global LED package Industry Report” released by LEDinside, a division of Taiwan based market intelligence firm TrendForce “With growth in the LED package market slowing and competitive pressure coming from China, the LED industry will face some major challenges next year,” said Roger Chu, research director at LEDinside  The massive influx of lighting manufacturers from Asia has turned the LED industry into a fiercely competitive marketplace and is forcing traditional lighting manufacturers such as Philips and OSRAM to change their strategies The three major trends that are expected to emerge in the LED industry in the near future are as follows:  1 In the era of low-priced lighting, LED manufacturers can achieve cost advantages through economies of scale  Given the low prices of LED lighting products, LED specifications are gradually becoming standardized, in particular in the China market Chinese LED manufacturers have a strong grip on the low-end market thanks to government grants and other funding perks That has allowed them to achieve economies of scale  Mid-power LED has replaced high-power LED as the mainstream LED product Chinese LED manufacturers have strong advantages in the 2835 LED market, in part because they have invested considerably in production capacity 2835 LED has many advantages, including low cost, economies of scale and its suitability for alternative bulb and lamp lighting products  2 LED lighting manufacturers will look to emerging markets for growth  With fierce competition in Asian countries such as Taiwan, China and Japan, LED lighting manufacturers are looking to expand to emerging markets to boost profit margins LEDInside believes a number of factors augur promise for LED lighting manufacturers in emerging markets next year Those factors include the drop in price of LED lighting products, to the extent that their cost is comparable to traditional lighting products, the relative ease of acquiring a patent in emerging markets, strong population growth, and government support in developing countries  3 Some SMEs to exit from LED market as consolidation continues  Globally, LED manufacturers will seek to build strategic alliances again in 2015 whether through stock investments, joint ventures or other means Yet at the same time, small and medium-sized LED lighting manufacturers will face challenging conditions Unable to compete on cost and without a niche market, Unable to compete in cost and without a niche market, some SMEs in the lighting market will eventually exit  If you would like to receive our full reports about the LED industry, please inquire about becoming a gold member 

Press Releases
GTAT Insolvency Marks Uncertain Future for Sapphire Cover Glass, says TrendForce

2014/10/07

LED

US sapphire furnace and sapphire manufacturer GTAT, the primary sapphire supplier to Apple, filed for bankruptcy on October 6 As of September 29, GTAT reported having US$85 million in cash Under the US$578 million multi-year agreement GTAT and Apple signed last November, GTAT must supply a certain volume of sapphire ingots to Apple while Apple was to pay GTAT in four installments with the final US$139 million payment scheduled for the end of October But low sapphire yield rates have made Apple withhold the last payment Additionally, GTAT lost an American Arbitration Association (AAA) lawsuit against Taiwanese sapphire manufacturer Tera Xtal Technology in August AAA ruled GTAT should return payment totaling US$24 million for faulty sapphire crystal growth furnaces, which greatly strained the firm’s finances There were some early warning signs of GTAT’s impending bankruptcy, said Roger Chu, research director of LEDinside, a subsidiary of the Taiwan-based market intelligence firm TrendForce For instance, GTAT has nearly 2,000 sapphire growth furnaces, which in theory could equip 10 million 55” iPhone 6 Plus phones with sapphire cover glass Yet the company’s sapphire yield rates were just 40% Furthermore, the yield rate of the back-end glass process is still low and the problem can not be solved before product release That explains the lack of sapphire cover glass in the new iPhone 6 and iPhone 6 Plus Many GTAT and Apple employees involved in the sapphire cover glass project have been terminated as a result Apple is differentiating itself from its competitors by using sapphire cover glass in its products, said Chu “Apple has already heavily invested in the technology and applied for many related patents, which can be seen in sapphire in the iPhone’s camera lenses, home buttons, and Apple Watch covers,” he said “Introducing sapphire cover glass to the iPhone is plausible but more time is required to surmount the technical difficulties of the process” If all goes well, the new-generation iPhone equipped with sapphire cover glass will be released at the end of 2015, Chu added   The three major challenges for sapphire cover glass are analyzed as below:  1)    Sapphire crystal production capacity: Sapphire crystal growth technology is very important for suppliers in the sapphire supply chain, said Chu Manufacturers that use the conventional Kyropoulos (KY) method, such as Monocrystal, Rubicon, Harbin Aurora Optoelectronics Technology and USI Optronics Corporation have mature sapphire crystal growth technology capable of reaching high yield rates Despite the high yield rates, the KY method has low sapphire volume output, mainly since mass production would require many sapphire engineers to manually operate the equipment Only a few manufacturers are capable of using this particular growth method to produce 90 kg grade sapphire crystal “This is especially challenging for smartphones applications, which have relatively low product life cycle, and require mass production, and a main reason why KY manufacturers were ruled out by Apple in the first place,” Chu said  In contrast, GTAT claims its Heat Exchanger Method (HEM) sapphire crystal growth furnace is highly automated The company is also capable of growing 200 kg and above grade sapphire crystals, which explains why Apple chose it as a partner However, HEM yield rates were far below GTAT’s reported figures, and more time is required to overcome the technical difficulties If Apple wants to develop sapphire cover glass in the future, it needs to have a sufficient sapphire ingot supply Current HEM, KY and Vertical Horizontal Gradient Freezing (VHGF) sapphire suppliers have all been certified by Apple Therefore, if experienced sapphire manufacturers continue to increase supplies to Apple, they might even reach a stable supply agreement 2)    Costs: A 55-inch and 500 um thick sapphire cover glass costs more than US$60, accounting for 7 percent of the total cost for an US$859 iPhone 6 Plus For that reason, lowering costs is essential GTAT has laser cutting technology which can make the sapphire cover glass thinner before laminating it with traditional glass That can also help to lower costs From a technological standpoint, it will still take some time before this method can be utilized in mass production It is also important to look for additional ways to lower costs  3)    Glass Processing: Except for sapphire crystal growth issue, back-end glass processes include cutting, polishing, coating, and printing is quite crucial as well The glass process is especially difficult because sapphire is a very hard material, but fragile at the same time and easily broken Thus, processing manufacturers need to find solutions to reach mass production 

Press Releases
TrendForce: Cree Allies with Taiwanese Manufacturer to Reclaim Market Share

2014/08/27

LED

The new agreement between leading US LED manufacturer Cree and Taiwan electronics firm Lextar, which stipulates Cree will invest $US 83 million in the Taiwanese firm, comes as a surprise, according to LEDinside, a subsidiary of the Taiwan-based market research firm TrendForce Under the agreement, Cree and Lextar will also cooperate on LED chip supply and royalty-bearing licenses for certain Cree LED chips  The tie-up signals Cree’s intentions to maintain its competitive edge and market share, said LEDinside research director Roger Chu “The general trend in the LED lighting market is intensifying price competition, which makes it difficult for leading US and European manufacturers, such as Cree and Osram, to compete with Asian manufacturers,” Chu said “It is very difficult for them to compete against Taiwanese and Chinese manufacturers in particular, especially against heavily subsidized Chinese manufacturers”  For instance, Cree’s product portfolio previously focused on more lucrative but costly high-power LEDs, which are starting to lose their pricing competitiveness compared with low to mid-power LEDs made by Asian manufacturers “The industry is shifting towards low or mid-power LEDs with higher cost-performance ratio, Chu said “Cree is very aware of this trend and has allocated OEM orders to Taiwanese manufacturers”  To boost its competitiveness, Cree has been cooperating with Taiwanese manufacturers since 2013 and has transferred OEM orders to strategic business partners including Lextar and Epistar, Chu added, “Cree’s investment in Lextar is a strategy to secure an economic LED chip supply from a manufacturer who can fully support them”  Lextar’s vertical integrated production line covers upstream to downstream products including chips, light sources, package, light modules and luminaires The company has long been an OEM for Cree and Osram, and currently has 70 to 80 MOCVDs that have reached full utilization rates Lextar intends to expand production capacity later this year, and a partnership with Cree would help Lextar secure an export market, Chu said  According to the announced partnership, Lextar will supply sapphire-based LED chips to Cree, largely to be used in blue LED chips, but this cooperation may be expanded to include package or other end products in the near future “Since Lextar has a comprehensive production line, Cree might work with them on other downstream products in the near future,” Chu said “This possibility should not be ruled out” 

  • Page 5
  • 6 page(s)
  • 27 result(s)