Unity Opto Plans to Focus on LED Lamps

Taiwan: In order to avoid price-cut competition for LED light bulb, Unity Opto has planned to modify its LED lighting product mix by gradually decreasing the production for light bulbs and increasing for much more profitable LED lamps. The company will gradually reduce monthly output of LED light bulbs from a peak level of 10 million units to three million units. Consequently, the proportion of LED lighting sales revenues for light bulbs is expected to drop from 60% currently to 20% in 2017 and that for LED lamps, including panel lights and outdoor lights, will increase from 40% to 80%.

Unity Opto is the largest Taiwan-based maker of LED light bulbs, with US-based retail chains being its main clients. Unity Opto in 2015 obtained licensed use of Toshiba's brand for marketing LED light bulbs in Europe and generated revenues of USD6-7 million in the year. Sales under Toshiba brand are expected to increase to USD15 million in 2016 and further to USD30 million in 2017. To enhance value of LED light bulbs, Unity Opto will launch models with low blue light and strobe in 2017. Unity Opto will also cooperate with US-based vendors to develop smart LED lighting systems.

Unity Opto will supply LED packaging devices for backlight units for 20 million notebooks in 2016 and 30 million units in 2017. For LED backlighting for LCD TVs, Unity Opto has landed orders from new clients, with small-volume production to begin in October and shipments scheduled through the third quarter of 2017. Unity Opto expects its supply to support backlighting for 5-6 million LCD TVs, increasing 25-50% on year, for a global market share of 5% in 2017. Unity Opto has started production at a new factory in New Taipei City, northern Taiwan, and expects production capacity at the factory to be nearly fully utilized in mid-2017.

According to TechSci Research, the company’s plans to shift its focus can be highly beneficial for the company as this would diversify the company’s portfolio and increase the company’s competitiveness in the APAC as well as in the global market.