cens logo

Taiwanese Firms Poised to Enjoy Biz Opportunities From Japan's Reconstruction

2011/03/17 | By Steve Chuang

Taipei, March 17, 2011 (CENS)--As the Japanese government is believed to emphasize more on use of renewable energy and power-stingy LEDs after the 9.0-magnitude earthquake ravaged its Fukushima nuclear power plant, Taiwanese firms in the green energy industry are likely to enjoy huge, long-term business opportunities emerging from Japan's post-earthquake reconstruction in the future, according to institutional investors.

They indicated that LEDs will be increasingly needed in Japan after the catastrophe, as the massive earthquake that hit northeastern Japan on March 11 destroyed thousands of houses along with fatal tsunamis and resulted in the recent nuclear power crisis in the country, arousing more attention to use of renewable energy and green products.

Therefore, the post-earthquake reconstruction that is believed to cost the country several trillion Japanese yen to restore considerable infrastructure and homes will surely grant Taiwanese firms of LED lightings and photovoltaic products tremendous business opportunities in the future.

On the other hand, with their factories already shut down due to earthquake damages or power supply shortage, Japan's leading firms as Sony and Sharp will be forced to step up outsourcing end-user products to overseas subcontractors, especially ones in Taiwan, noted market observers. In addition to increasing orders, this will also help to reinforce the buyer-supplier relationship between Japanese and Taiwanese firms.

Institutional investors opine that Taiwanese LED firms such as Epistar Corp., Formosa Epitaxy Inc. and Unity Opto Technology Co. and Delta Electronics Inc., and photovoltaic product suppliers as Ligitek Electronics Co., Ltd., Solartech Energy Corp., Gintech Energy Corp., Green Energy Technology Inc. and Sino-American Silicon Products Inc. will be very close to those business opportunities.

For example, Ligitek, which has joined hands with Japan's West Holdings on a joint venture, Ligitek Japan, will deliver more certified photovoltaic power generation systems to West Holdings for post-earthquake reconstruction in the future.