According to Edward Po, general manager of Philips Taiwan Ltd.-Lighting Division, Philips Lighting will likely subcontract LED lighting manufacturing to Taiwan when it begins volume production of the products.
Philips had planned to make global debut of 4W and 7W LED lamps in synch early next month, aiming at replacing sub-40W incandescent lamps and compact fluorescent lamps with the lamps over the next two or three years. Once Philips begins volume production of the lamps it will likely subcontract Asian LED manufacturers, particularly Taiwanese manufacturers, to make the lamps for it in order to cut production costs. Philips had kept in touch with three to four of Taiwan’s top-tier LED suppliers in case Philips decides to deliver outsourcing orders.
Currently, Taiwan has over 22 million incandescent lamps still in use, consuming around 1.08 billion kilowatts of electricity per hour a year. An estimated 800 million kilowatt per hour could be saved a year if these energy-guzzling lamps are completed eradicated from the island. The government here plans to wipe out incandescent lamps in four years and replace them with energy-saving lamps including LED lamps, to promote reduction of greenhouse-gas emission and electricity consumption.
Po estimated LED lamps to snatch up 5% of global lighting market over next two to three years, given the global trend of governments to push energy-saving lamps, up from current 1%. Taiwan’s lighting market is estimated at NT$15 billion a year, with NT$5 billion generated from light-source sales and NT$10 billion from sales of lighting fixtures. LED currently represents only 5% of the Taiwan market now.
