A study of the relationship between structure, conduct and performance of the Taiwanese LED industry
Date Issued
2014
Date
2014
Author(s)
Lin, Hsin-Hung
Abstract
Abstract
The purpose of the present study is to explore the current development of LED (Light-Emitting-Diode) manufacturers by utilizing the S-C-P theory (Structure-Conduct-Performance) to analyze the manufacturers’ behavior, market structure and operation performance. The study selected three of the leading manufacturers in each of LED upstream、midstream and downstream and chose the adequate financial data from their financial reports posted on the Market Observation Post System of Taiwan Stock Exchange in past five years to collate key parameters.
The results and suggestions of the study were that (1) If the authorities concerned of Taiwan couldn’t offer the same subsidies as of China to LED upstream , they should enforce the LED manufacturers in Taiwan to consolidate. The LED manufacturers in Taiwan are far behind the international leading manufacturers and face the unfair competition from China and Korea. The LED manufacturers in Taiwan are powerless to reverse the market structure and will be out of the market in the end. (2) In the supply chain of Taiwan LED midstream and downstream, only the company “EPISTAR” is capable to compete in the cutting-edge production market and could be viewed as the most competitive company in Taiwan LED industry. The reasons of its success are as follows. “EPISTAR has established in 1996 and accumulated expertise and expansive capacity. “EPISTAR” has formed strategy alliances with some of the most well-known brands around the world and has built stable patent cross-licensing with some of international leading manufacturers. Moreover, “EPISTAR” has completed many M&A deals with the related firms and become the EPISTAR Group. However, the manufacturers such as Chi Mei Lighting Technology Corp. (CMLT) and Ubilux Technology Inc. went bankrupt. The extremely different operation results of LED manufacturers in Taiwan show that the authorities concerned of Taiwan should immediately take action pushing the consolidation.(3) Currently, China is surging as the second LED demand market. In order to help good LED manufacturers in Taiwan survive, the authorities concerned of Taiwan should follow their steps to offer subsidies promoting LED replacement in domestic market and to limit the bids of Government projects only for domestic manufacturers. Moreover, the authorities concerned of Taiwan should enhance the cooperation with China Government to strengthen the technical exchanges and lower trade barriers.
Key words：LED、upstream/mid stream/downstream、Sapphire、LED Epi
Subjects
LED
上中下游
節能
藍寶石
磊晶
Type
thesis
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