Philips or outsource LED lamp production to Taiwanese manufacturers


According to Edward Po, president of Philips Taiwan Branch, Philips Lighting is expected to outsource Led Lighting production to Taiwanese manufacturers after mass production.

Po said that Philips plans to start 4W and 7W LED lights globally at the beginning of next month to replace sub-40W incandescent lamps and compact fluorescent lamps in the next two to three years. He also said that once Philips began mass production of such lamps, they are likely to outsource production to Asian LED manufacturers, especially Taiwanese manufacturers, to reduce their production costs.

Po said that in preparation for Philips' possible outsourcing orders, he has already maintained contact with three to four top LED suppliers in Taiwan.

Po said that the 4W and 6W lights advertised that because of the good heat dissipation design, their service life is 35,000 to 40,000 hours, and the quality is reliable. Then, Dutch manufacturers are interested in introducing these products to replace 60W and 80W fluorescent lamps.

However, Po also admitted that the LED lights that will be available soon are also relatively expensive, and the retail price is NT$3,000 each. (for $96, $1: 31 NT) Considering the energy-saving issues, his company will target the five-star hotel lights first.

To promote carbon dioxide emissions and power consumption, the government now plans to clean up fluorescent lights after four years and replace them with energy-saving lamps (including LED lights).

At present, there are more than 22 million fluorescent lamps still in use in Taiwan, which consume nearly 1.08 billion kilowatts of electricity per hour per year. It is expected that these high-energy lamps will be able to save 800 million kilowatts of electricity per hour in a year after they are completely clear from the island.

Po predicts that LED lights will capture 5% of the global market share in the next two or three years, currently accounting for 1%, deriving the global energy-saving lamp trends of various governments.

Taiwan's lighting market is expected to be NT$15 billion a year, with NT$5 billion (a contract of US$161 million) generated by light source sales and NT$10 billion (US$322 million) from lighting sales. LED lights currently account for only 5% of the Taiwan market.

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