Taiwanese LED package manufacturer Tyntek has ended investment in LED upstream chip manufacturer Alpha Plus Epi Inc (Alpha Plus Epi) with an estimated recognized loss of NT $1 billion (US $33.4 million) for 2013. The company however does not plan to completely back out of the LED chip market. Instead, the company is shifting focus from the Taiwan market to China. Tyntek through a joint venture with Fujian Electronics & Information established Fujian Prima Optoelectronics in 2010. This new epitaxy factory is projected to begin mass production in 2H14.  

The trend of mergers in the chip manufacturing industry remained unchanged in 2013. After the shutdown of Chimei Optoelectronics and Ubilux going out of business, Tyntek's wholly owned subsidiary Alpha Plus Epi concluded business in 2013. The company has a total of nine MOCVD reactors, which were mainly used for blue LED chip production. Affected by the anemic LED industry, as well as price competition from Chinese manufacturers, the operation situation for the company was not ideal. Tyntek therefore began to gradually phase out business in 2012 with an estimated recognized loss of NT $1 billion in 2013.  

However, Tyntek has not given up on the LED chip market and continues to be optimistic about the LED lighting market. The company entered into a joint venture between Chinese and Hong Kong manufactures in 2010 establishing Fujian Zhaoyuan Opto as the company's center of LED chip development. Construction has been completed for the factory and is currently planning the initial installment of 30 MOCVD units. Production is estimated to begin in 2H14. The factory can accommodate a maximum of 100 MOCVD units. Further production expansion will depend on future market situation.
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The U.S. ban on 40W and 60W incandescent bulbs put into effect by the U.S. Congress January 1st is an effort to promote more energy efficient lighting, such as CFLs and LEDs.  China LED industry stocks boomed on the first working day of 2014. Taiwanese companies including Unity Opto, Forepi, Para Light, and Arima Optoelectronics stocks rose 7 percent. Chinese manufacturer Changfang Lighting rose 10 percent and Changelight, Honglitronic, Ruifeng , Kingsun, and FSL all rose 3 percent.  

Worth noting is China, the EU, Australia as well as other countries have already expanded regulation from commercial to residential and outdoor lighting. In 2013, Chinese regional residential lighting market scale reached US $5.9 billion (RMB 32.7 billion), a growth of 36 percent. Among this, the LED residential lighting market scale was US$ 814 million with a staggering growth of 96 percent, which is estimated to make up 24 percent of the global total.  Dropping prices for LEDs and gradual increase in luminosity has shortened the investment recovery period, said LEDinside. 

This has driven up global bulb replacement acceptance by companies and the public sector, officially kicking off the global LED replacement trend with bulbs and tube lighting becoming most popular products on the market. Compared with 2013, LEDinside anticipates global LED bulb demands in 2014 will reach 86 percent and 89 percent for LED tube demands.

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Considering Lighting Japan 2014 is a trade show focused on LED and OLED industry, it is probably no surprise that Philips featured a couple of OLED products at its booth from Jan. 15-17, 2014 at Tokyo Big Sight. In fact, the company has highlighted more OLED products at its booth this year than LED products. The OLED products highlighted at Philips booth included OLED panel GL 350, an interactive OLED mirror, and miniature Living Sculptures. Only two LED products were displayed at the booth including Philips Hue bulbs and LED textile. The emphasis on OLED technology reflects the difficult market condition for OLED manufacturers.

Kenichi Hara, Key Account Manager, Lighting Division, Special Lighting, Philips Electronics Japan. (LEDinside)";Philips has had many years of experience in the general lighting sector, but the OLED market is a completely different market," explained Kenichi Hara, Key Account Manager, Lighting Division, Special Lighting, Philips Electronics Japan. "

Many of the manufacturers are in the same situation, as to how to sell and approach to make OLED lighting useful."Philips OLED panel GL 350 displayed at Lighting Japan 2014. (LEDinside)  The OLED panel GL 350, for instance, which is a warm colored OLED at 3,200 K can be applied in buildings, said Hara. The panel has an energy efficiency performance of 45 lm/W is slightly lower than LED bulbs 50 lm/W, and is sold at around 20,000 Japanese Yen (US$ 192.08). Mini OLED Living Sculptures can be used in hotel lighting applications and entrances. In Japan, the OLED market is still pretty much focused in the construction sector, noted Hara. Philips, for instance, is selling most of its OLED products to general contractor and material makers, which is a completely different market channel from general lighting. ";It is a difficult market to sell compared to general lighting," commented Hara.                     

Philips OLED mirror LivingShapes Interactive mirror. (LEDinside)    For OLED makers vying after the general lighting market, the beauty and cosmetic industry seems to have garnered much interest. Philips has also shown similar interest in the Japan beauty and cosmetic industry with the display of interactive OLED mirror, LivingShapes Interactive mirror. The OLED lighting panels displayed on the mirror can be adjusted according to user preference.Philips LED Luminous textile. 

As for other novel applications at the Philips booth, the company did not display LED signal carpets that are being co-developed with Desso. Instead, LED Luminous textiles were hung on one side of the booth wall. The decorative textiles can be customized, with a wide range of fabrics for consumers to choose from. In addition, the lights can be used as decorative lighting for wedding and hospital rooms, said Hara. However, the LED textiles are priced at a hefty price of US$ 4,802 (500,000 Japanese Yen) a piece, so it probably will not be widely used by hotels anytime soon.
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Barbican Center, Europe's largest multi-arts and conference venue, has commissioned the multi-disciplinary art and design studio United Visual Artists to create a new work for the Curve. Coinciding with their 10th anniversary, UVA present Momentum, an immersive installation that combines light, sound and movement. Drawing on physics and digital technology, UVA are turning the Curve into a spatial instrument, installing a sequence of pendulum-like elements throughout the 90 meter long gallery to create an evolving composition of light and sound. The pendulums – sometimes moving in unexpected ways – project shadows and planes of light across the 6metre-high walls and curved floor of the space. Visitors are invited to explore the room at their own pace, and their movement through the gallery shapes their individual experience. United Visual Artists (UVA): Momentum opens in The Curve on Feb. 13, 2014, and will be on display till June 1, 2014.  "; Our internal model of time, movement, mass and space is based on a lifetime of experience, perhaps even genetically encoded," said UVA. ";What happens when we build a new model? 

What happens when we bend the rules?" UVA is an art practice that use design processes to combine a wide range of disciplines including sculpture, installation, live performance, and architecture. The studio has an open approach to collaboration, uniting diverse skills to continuously evolve new technologies and materials, which in turn suggest new artistic directions. UVA's lines of enquiry include the tension between real and synthesized experiences - the questioning of our relationship with technology, and the creation of phenomena that transcend the purely physical. In all their work, they aim to distill complexity down to its essence. Based in London, UVA was founded in 2003 by Matthew Clark, Chris Bird and Ash Nehru.A woman looking at UVA's light display Momentum at the Curve, Barbican Center. (Photo Image Credits © Bethany Clark/Getty Images, Courtesy Barbican Art Gallery)    UVA's installations consider each space an immersive environment where the visitor's point of view plays an important role in the outcome. In High Arctic, 2011, visitors were invited to explore a vast abstracted arctic landscape made with sculptures, light and sound, in a monument to an Arctic past. 

Similarly, their installation Volume, the first commission for the John Madjeski Garden at the V&A Museum in 2006 transformed the space over the dark winter months. Audiences immersed themselves in a field of luminous, sound-emitting columns that responded to visitors' movements to create an immersive, constantly shifting visual and musical experience Jane Alison, Head of Visual Arts, Barbican , said, ";Combining sophisticated research-led technology with a minimal aesthetic, UVA are known for site specific works of great beauty and clarity, in which the visitor is always an active participant. We are delighted to present Momentum, our first pure light and sound installation in the Curve."Group of visitors looking at UVA's light display Momentum at the Curve, Barbican Center. (Photo Image Credits © Bethany Clark/Getty Images, Courtesy Barbican Art Gallery)UVA has been commissioned by Artwise Curators, The Creators Project, La Gaite Lyrique, National Maritime Museum, Opera North, Royal Academy of Arts, Victoria & Albert Museum and YCAM Japan. 

Their work has been exhibited at institutions and galleries including the South Bank Centre, the Wellcome Collection Durham and The British Library. Internationally UVA have shown in Barcelona, Beijing, Hong Kong, Melbourne, New York, Paris, São Paulo, St. Petersburg, Taipei and Tokyo. Their designs for live performance have led to commissions for venues such as the Tate Modern Turbine Hall, Serpentine Gallery and Madison Square Garden in New York. In 2007, UVA's responsive light and sound sculpture Volume won a yellow pencil at the D&AD awards, and featured in the London Design Museum's ‘Design of the Year' show in 2008. Speed of Light was nominated for ‘Design of the Year' in 2010, and High Arctic nominated in 2011. UVA were awarded a distinction for their kinetic installation Chorus at the 2010 edition of Prix Arts Electronica. In 2011, Speed of Light was awarded a Creative Review Annual and listed in the Annual as ‘Best in Book'. UVA are currently working on a solo show at the Towner Gallery Eastbourne which opens in April 2014.
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The LED industry is benefitting from Chinese government policies, as the country puts environmental pollution issues high on its agenda and highlights energy efficient and environmentally friendly industries, according to a report by Chinese-language media Sing Tao. Chinese LED manufacturer NVC Lighting announced earlier it expected increased profits in 2013, which led to rising stock prices. As LED lighting industry becomes the next major trend, high growths are expected ahead. 

NVC Lighting main businesses include manufacturing and sales of light sources, luminaires, lighting appliances and other related products. In an earlier announcement, the company projected profits at the end of 2013 will be 27 times that of 2012. The main cause behind the surging profits is because the company's credits were affected by withdraw of RMB 222 million (US$36.17 million) in 2012, and reduced management costs in 2013. Strong Growth in LED Lighting Exports Mainstream lighting products are quickly adopting LED lighting products amidst the LED lighting trend, which will further lower LED package and component prices. NVC Lighting related product sales will double to 40 percent in 2014, compared to 20 percent in 2013, according to J.P. Morgan statistics. 

In addition, the company has the advantage of large domestic distribution network in China, with up to 3,200 sites and a wide range of products, which is expected to improve gross profit margin in the next two to three years. The rebounding LED industry can be attributed to price adjustments over the past few years, which have made LED lighting prices more acceptable to average consumers and contributed to rising demands. In addition, there has been a gradual revival in oversea demands. 

LED lighting product export growths were strong in 2013, growth rates were especially high in second half of the year, with monthly average growth at above 40 percent, according to Chinese customs statistics. There are strong signs of rebound. One main reasons behind surging LED demands has been the phase out of 60W and below incandescent bulbs in many regions of the globe. Retailers are stocking up LED lighting products in advance, therefore LED lighting export market has been building up growth momentum since 2H13. This trend is likely to continue for several years.
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LEDs are tooted as having long lifespans, but as more traditional light sources are being switched out for SSL, manufacturers are realizing that long lifespans are not good for a sustainable business model. Therefore, companies such as Philips and Osram are looking into long-term installation contracts. Philips has secured such a contract with Washington's transit authority to upgrade around 13,000 fixtures in parking lots, according to a recent Bloomberg Businessweek report. By 2020, SSL will make up around two-thirds of global lighting, according to Osram. 

This is a massive increase from 18 percent in 2011. Market growth has been spurred by the move to energy efficient lighting by urban areas over the past few years. ";The budget of cities and local communities are getting smaller and smaller and the pressure to be more efficient with budget is increasing," said Florian Wunderlich, Director at consultancy McKinsey & Co. in an interview with Bloomberg Businessweek. As more cities move to replace traditional lighting sources with more efficient SSL, and less need to replace said SSL owing to its long lifespan, companies such as Philips and Osram are looking to secure a steady flow of revenue through long-term contracts. ";Key to the new business model is to provide installation and management services over many years," said Eric Rondalat, CEO of Philips' lighting sector. 

LED lighting manufacturers have begun to place more importance on systems and services instead of solely on products.  Osram and Philips are now looking into emerging markets such as in Asia and Africa. ";We focus on Africa as we regard this as a big untapped market," the report quoted Nick Kelso, spokesperson for Philips lighting in Africa. Growth of the LED industry has also led to a rise in Asian competitors. Japanese manufacturer Toshiba and Korean manufacturer Samsung have both seen strong performance in their lighting sector recently. The addition of service margins will be able to protect manufacturers against decline in profit margins as LEDs popularize, said Wunderlich. (Edits: Leah Allen, Editor/Translator, LEDinside)
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Governor Andrew M. Cuomo announced awards of $4.3 million for 17 projects dedicated to reducing the environmental impact of transportation in New York State. ";By investing in innovative new energy technologies, we are continuing our progress in building a cleaner New York," Governor Cuomo said. 

The projects are being funded through a competitive solicitation administered by the New York State Energy Research and Development Authority (NYSERDA). Award recipient in the LED field included Clear-Vu Lighting for a LED lighting retrofit project in the New York City subway. The company was awarded with US $242,000 in funding. Clear-Vu Lighting will expand its LED lighting products to include a new device to be used in the New York City subway system.
 

Clear-Vu's product would replace a compact fluorescent lighting system used to light tunnels with a LED-based system that would significantly reduce installation and energy costs. "Congratulations to the winners of these awards, whose innovative projects bring transportation technology to new levels of efficiency and emissions control," said John B. Rhodes, President and CEO, NYSERDA.
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A new method of Lipo Suction using LED lights offers patients a non-invasive alternative to surgery.(photo credit: TipsTimesAdmin via photopin cc)When the body requires energy, the brain sends signals to adipose cells to break down stored fat. This process is called lipolysis. Free fatty acids are then released into the bloodstream and circulate throughout the body. Lipo Light acts in a similar manner where heat and light emitted through the device stimulates the release of energy.                     

Lipo Light LED light therapy (photo courtesy of Lipo Light);We can actually reduce body size, loose inches and loose pounds," Dr. Thomas Gault from the Gault Wellness Center in Harrisburg Pennsylvania said. ";A series of panels are placed on the targeted area and it allows the light from the panels to enter the tissue, which causes the fat cells to actually open up and release their contents. Once the fat is released, the fat cells can collapse, resulting in inch loss which is permanent assuming you maintain a reasonable diet." Cathy Lighty from Harrisburg recently went through 12 sessions. 

After six months of treatment, Lighty has lost a total of two inches off of her rib cage, one and 2/8 around her waist, and two inches around her abdomen. Lighty is thrilled with the results. Watch Cathy Lighty's experience with Lipo Light. Lipo Light is not a permanent treatment however. In order to sustain results, the LED Light Therapy must be used in conjunction with diet and exercise.
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Shanxi Securities recently investigated San'an Optoelectronics (San'an Opto) to gain a better understanding of the company's production capacity and manufacturing situation. The LED industry has entered into a developmental golden age. Since many countries banned the production and sales of incandescent bulbs, LED lighting will move into a period of popularization, said Shanxi Securities. LED retrofits already show economic benefits over conventional lighting, especially with the rapid price drops over the past two years. LED lighting prices have already reached a critical point for affordability, said the securities company. 

San'an Opto's production capacity has reached full operation with product sales soaring on strong demands from downstream manufacturers. With demands booming for the company's main business LED chips, San'an Opto has not only fully exerted technological advantages, it has also increased equipment operating efficiency to lower production cost and increase product market share. The company's subsidiary has 130 MOCVD units already working at full capacity. Scale effect is anticipated to edge closer to actualization in light of increased production capacity. With the company's high order visibility, profit margin is expected to gradually rise over the quarters. The entire industry is prospering. 

Order visibility currently maintained at around three months, with lighting growth rates soaring above 50 percent. Additionally, chip production cost showed a clear drop as the company's technology and scale continues to increase. Profit margin has likewise increased. Shanxi securities projected San'an Opto's gradual profit margin increase will become a trend. San'an Opto has been pursuing expansion efforts, with new equipment introduced by the end of the year. Facing the ever growing LED market demands, the company decided to move phase two of their optical industrialization plan from Wuhu to Xiamen. The project's total investment of RMB 4.07 billion (US $651.6 million) will be increased to RMB 10 billion. The company has already begun factory construction and is estimated to introduce a total of 20-30 new equipment by the end of the year.

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As lighting consumption continues to increase, solid state lighting will become a major driving force for LED lighting growth that is expected to grow for several years, said Micheal Schmitt, Regional Marketing Director at Osram during LEDinside's LEDforum at Guangzhou International Lighting Exhibition (GILE) on June 11, 2014. ";LEDs has propelled the lighting industry evolution," said Schmitt. ";Strong market growth is anticipated to continue growing till 2020."                     

Micheal Schmitt, Regional Marketing Director at Osram during LEDinside's LEDforum at Guangzhou International Lighting Exhibition (GILE) on June 11, 2014 (LEDinside)    Despite the thriving LED lighting industry and ban on incandescent lighting by various countries earlier this year, conventional lighting will still continue to maintain a stable market share for a few years. Commercial lighting has been one of the fastest growing segments in the LED lighting market. Within commercial lighting, Schmitt pointed out requirements differed depending on application fields. Aesthetic lighting for architecture and hotels, for example, require high CRI, cost/performance ratio (C/P), and long lifespan. Residential lighting, however, places more importance on C/P, while industrial lighting focuses on luminosity and lifespan. 

In terms of retail lighting, lighting plays a very important role in creating a conducive atmosphere that encourages consumers to buy, noted Schmitt. Lighting is able to transform a simple shop window into an eye-catching display case, drawing passersby attention. Retail lighting is able to make products more attractive and create a happier and comforting atmosphere within the store. Research has shown that color temperature is more important in retail lighting than brightness. Retailers are therefore using narrow beam spotlights to create ambient lighting atmosphere and a sharp contrast with the surrounding, to make products stand out. 

Although, Osram did not set up a booth at this year's GILE 2014, they did host a ";Light is Osram" even for clients on June 11th. The company displayed both conventional and specialty lighting products and solutions. Products, technology, and services showcased covered commercial lighting in fields such as chain stores, hotels, tunnels, architecture, and residential indoor lighting. Osram is very optimistic about the future of commercial lighting. (Author:Flora, Editor, LEDinside China,Translator:Leah Allen, Editor, LEDinside)

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