FPG, Yulon group venture into LED lighting market.
Taipei, Aug. 21, 2009 (CENS)--The Formosa Plastics Group (FPG) and the Yulon Group have recently financed LED (light emitting diode) lighting maker Trend Lighting Corp. in light of bright outlook of the market.
The two groups have each acquired a 10% stake in the lighting maker, which is currently capitalized at NT$280 million (US$8.4 million at US$1:NT$33) and chaired by P.Z. Wang, a former president of LED chipmaker Arima Optoelectronics Corp.
FPG and Yulon have plowed capital into Trend through LED affiliates Nan Ya Photonic Inc. and Precision Silicon Corp., respectively.
The LED-lighting startup, founded in March 2008, has won Taichung County Government's NT$45 million (US$1.3 million) contracts to supply around 2,000 LED streetlights.
Wang stressed that Trend Lighting currently does only design work, leaving production to dedicated manufacturers. The company, he added, is likely to set up joint ventures in mainland China with Chinese manufacturers to assemble lighting products.
To ward off patent lawsuits, Trend Lighting adopts chips from international big-name suppliers, according to Wang.
The Trend Lighting chairman touted that global LED-lighting market would begin to take off this year along with the declining cost of the products and concerted efforts made by governments in promoting the use of LED lighting.
Wang pointed out that LED lights remain pricy relative to traditional lighting products, making the market heavily dependent on government contracts for the time being. He estimated that global LED lighting market would be controlled by only few big players in the long run after a slew of blood-letting competitions among a large number of manufacturers, who are bracing for a growing number of new entrants.
Global lighting market revenue is projected at US$90.4 billion for 2010, far bigger than consumer-electronics market, promising the LED lighting industry opportunities that are too lucrative to be ignored by the manufacturers.
Taiwan's Bureau of Energy under the Ministry of Economic Affairs estimated 2009 market for LED lighting products at over US$500 million worldwide. The ministry's Industrial Technology Research Institute projected the market to grow to US$980 million next year, roughly representing 1% of global lighting market.
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|Title Annotation:||Yulon Group, Formosa Plastics Group, Trend Lighting Corp.|
|Publication:||The Taiwan Economic News|
|Date:||Aug 21, 2009|
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