Delta Electronics to Boost LED Lighting Output by 150% in 2013

Apr 30, 2012 Ι Industry In-Focus Ι Lighting & LEDs Ι By Ken Liu, CENS
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Taipei, April 30, 2012 (CENS)--Delta Electronics Inc. is vigorously boosting its LED (light emitting diode) lighting production capacity by 150% in 2013 to keep up with brisk demand.

Taiwan's spectacular hikes of electricity rates, which will be enforced on May 15, have fueled demand for energy-saving products, including LED lamps. Delta's weekly shipments of LED lamps in April have risen three times from March and its production lines will be inundated with orders at least through July, according to the company.

Delta executives pointed out that before the rate hikes were announced, sales of LED lamps in Taiwan had been lukewarm regardless of the CO2 emission awareness. Now, the upcoming implementation of the new rates, 16.9% increase for household uses, 30% increase for commercial uses and 35% increase for industrial uses, is compelling Taiwan's consumers and enterprises to strive for LED lamps with their counterparts in the United States and Japan, straining capacities at Taiwan's major suppliers like Delta.

Also, while receiving an increasing number of Japanese contracts for LED bulbs, Delta is in talks with several Japanese buyers over fresh orders for the lamps. The company's executives expected more contracts from Japan this year as Japan's electrical power supply would be 20-30% short of demand this year.

Last year, Delta used its energy-efficient products and services to help its customers reduce electricity consumption by a total of 3.3 billion kilowatt-hours, equivalent to a 2.03 million-ton reduction in carbon dioxide emission, according to the company.

Taiwan's Ministry of Economic Affairs (MOEA) announced that it will put up NT$100 billion (US$3.4 billion at US$1: NT$29) as a fund for loaning or subsidizing enterprises' procurements of energy-saving equipment, including LED lamps. Also, the government will invest NT$2.7 billion (US$95 million) to replace the 326,000 traditional streetlights around the island with LED lamps in three years and all traditional emergency exit lamps on the island will be replaced by LED lights by the end of this year, aiming at saving 143 million kilowatt-hours of electricity a year.

Industry executives estimated new electricity rates would help boost penetration rate of LED bulbs in Taiwan to 30% in one and a half years, elevating the lamps to mainstream position in Taiwan's lighting market in 2015.
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