Abstract
Light-emitting diode (LED) is a very essential application for energy-savings nowadays. The revenue of the Taiwan LED components industry is ranked top one in the world, followed by that of Japan and South Korea. Based on the advantage of their electronics industry, Taiwanese LED companies create a unique model to compete with the international firms. Large international LED companies achieve economies of scale by vertically integrating their operations. Taiwanese LED companies specialize and achieve an optimal efficiency by vertically disintegrating across the upstream, midstream, and downstream sectors in the value chains. Taiwanese LED companies create economies of scale and economies of scope through a complete industrial value chain.
Highlights
Energy-savings are getting more and more important in recent years, since both global warming and energy reduction are getting more and more serious
Taiwanese firms play an important role in the global Light-emitting diode (LED) components industry
A complete value chain was established in Taiwanese LED industry, with the vertical disintegration across upstream, midstream, and downstream segments
Summary
Energy-savings are getting more and more important in recent years, since both global warming and energy reduction are getting more and more serious. The high-power LED market share of Taiwanese, Japanese, South Korean, and Chinese firms, when combined, amounts to 61.3% of the global total, leading the global LED industry [1]. The revenue of Taiwanese LED components industry reached US$4,673 million in 2011, which accounts for approximately 30% of the global total, ranking first in the world. Japanese firms have been the global leaders of the LED industry with its high-level technologies and capabilities for a significant length of time. Japanese firms claimed over half of the global market share. Global market share of Japanese firms declined to 41.5% in 2010 because of strong Taiwanese firms and aggressive Korean and Chinese firms. The fast-growing South Korean firms secured a market share of 10% in 2010. The positioning and competitive advantage of Taiwanese firms in the global LED industry is analyzed
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