Taiwanese LED manufacturers have been affected by Chinese manufacturers’ low pricing strategies, even the Taiwanese LED stock market was hit hard, reported SET News.

A lot of market rumors speculate Lite-On will be shutting down its LED business and laying off more than 100 employees, but the company CEO Guang Zhong (Warren) Chen denied these market rumors. He emphasized the company was restructuring certain businesses, due to changes in the industry.

Lite-On executives posing for a photo shoot at Lite-On Award 2015 last Wednesday in Taipei. Second from the left is the group's Chairman Raymond Soong, center is group CEO Warren Chen. (Photo courtesy of Lite-On)

An awkward atmosphere enveloped the supposedly festive Lite-On Award 2015 that took place last Wednesday in Taipei, due to market rumors of the company slashing more than 100 jobs as it undergoes restructures.

The company CEO Chen denied these market rumors vehemently: “We are transferring our employees and LED production capacities from red sea markets to our original visible and invisible lighting businesses applications. The real situation is we are adjusting our manpower.”

The company CEO denied layoff rumors and emphasized the company is refocusing on blue sea markets, and will transfer 120 employees from its LED lighting application and indoor lighting businesses from China and Taiwan to its optoelectronics department. The company will prioritize communications with employees unwilling to transfer. However, the underperforming supply chain was impacted by the poor economy.

“Chinese manufacturers also entered this competition, and have decimated the average backlight LED retail price and costs,” said Chen. “This has destroyed the market, and pushed the industry into a vicious cycle.”