The LED chip industry is expected to undergo restructuring within the next two years which will lead to an expected net profit return of 30-35 percent for the industry, forecasted San’an Optoelectronics Fujian Province Vice President Simon Lin at LEDforum Taipei 2013 on Oct. 16.

The guest speaker at LEDforum Taipei 2013 was very optimistic about LED industry lighting demands from 4Q13 to 2014. The restructuring trend in the LED industry is expected to continue, as many chip and package manufacturers in China have closed down, observed Lin. He forecasted as the industry undergoes restructuring and lighting demands rebound, LED chip manufacturers net profit is expected to climb up 30 to 35. 

San’an Optoelectronics Fujian Province Vice President Simon Lin at LEDforum Taipei 2013. (LEDinside)

If clients lower price quotes, LED chip manufacturers have no choice but to cut corners or go bankrupt, said Lin frankly. He went on to clarify San’an Opto refuses using low price strategies to avoid damaging net profit performances. Other than improving its technology and production yield, strategies for LED chip manufacturers to preserve net profit performance is to find niche markets or blue sea markets.

LEDforum Taipei is a two day event organized by LEDinside, a research subsidiary of TrendForce. The event will run from Oct. 16-17 at Evergreen International Convention Center in Taipei, Taiwan.