Looking back in 2013, the LED industry has finally rebounded after years of depression. Large manufacturers are taking advantage of other companies during their weak moments, burying the hatchet with well matched companies, or joining hands to defeat competitors. Many less competitive weaker companies  receded from the market this year. The survival of the fittest is anticipated to continue well into 2014. Restructuring of LED chip and package manufacturers will continue until 2015-2016, remarked Epistar chairman B.J. Lee.

Wave of Chinese executives abandoning their posts

In 2013, ,any company executives have hit the road leaving their companies behind, especially in China. One example was light fixture manufacturer Zhonngshan Xiongji which was abandoned by their executive in July. What surprised the market is that Xiongji is one of the few companies that has a sales revenue over RMB 100 million (US$ 16.52 million). Immediately after this incident, the head of Everlight Shenzhen branch  left his position in the company. Funding shortage, product technology, competition, as well as price pressure has been the root of cause leading to executives jumping ship.

Wealthy shareholder refuses to support Chi Mei as the company crumbles

July seemed to be a bad month for the LED industry with many Chinese manufacturers ending business and Taiwanese LED chip manufacturer Chi Mei Lighting ceasing business operations. What shocked the market was even though Chi Mei Lighting. had large stockholders including Innolux and Chi Mei Corp, and good reputation on the   Chinese market, it still ended up with  large debts when it closed down business. The industry did not fare much better in August when Ubilux shut down as well.

After a year of discussion, Forepi and San’an investment plan finally becomes official

After more than one year of talks on Chinese LED chip San’an Optoelectronics investment in Taiwanese LED chip manufacturer Forepi , the companies finally reached a conclusion during the second half of 2013.  To quell market rumors and misgivings Taiwan’s Ministry of Economic Affairs (MOeA)  demanded the Chinese company to promise “no patents can be transferred between the companies, no talents can be headhunted, that San’an will have  no management rights, and that there can be no transfer of technology.”

San’an and Everlight look abroad for new partnerships in Europe and U.S.

Cross-strait manufactures expanded acquisitions in   Europe and U.S. markets last year. San’an Optoelectronics announced the procurement of U.S. based Luminus Devices on June 5th for US $22 million, lured by the company’s 151 global patents. Taiwanese LED package manufacturer Everlight expansion has not slowed down. The company acquired a 100 percent stake in German lighting firm WOFI in June to strategically delve deeper into German market’s distribution  channels.

NVC Chairman Wu returns to the Board of Directors and cooperation with Electech finally sees advancement

NVC Lighting received a lot of media attention during the first half of 2013, due to internal conflicts and the return of Chairman Wu Changjiang to the board of directors. The company announced the election of Wu and Wang Dongming as Executive Directors after receiving a written notice from a shareholder meeting on June 4th. The appointment finally ended the company’s internal strife. In addition, cooperation with Electech started to develop during the second half of the year with a joint venture announced by the two companies on August 30th for a package factory.

Traditional bulb manufactures quicken entry into LED lighting market

Traditional bulb manufacturer China Electric Manufacturing Corp and their light brand TOA became leading enterprises in the Taiwanese lighting industry. The two companies have recently entered into the LED lighting market. China Electric became the main stocker holder for Taiwanese LED vertically integrated manufacturer Lextar after merging Wellypower. The company also acquired Innolux Group’s LED package manufacturer Gio. All these are evident indicators of traditional bulb manufacturers speed up activities to enter the LED lighting market.