Taiwan Photonics Industry's Overall Revenue Forecast to Slightly Grow 3% in 2014

After a stable 2013, Taiwan's photonic industry is forecast to finish 2014 with overall revenue exceeding NT$2.3 trillion (US$76.667 billion), slightly up 3% year-on-year (YoY), according to the Photonics Industry & Technology Development Association (PIDA), a domestic industry research organization.

PIDA's growth forecast is based mainly on new applications of LEDs and LED lighting, photovoltaic technology and displays, as well as markets to emerge this year. For instance, PIDA noted, the application of 4K (higher definition viewing) displays will particularly sustain the display panel sector's growth; and the steadily growing market demand for solar power in China will help Taiwanese photovoltaic companies drive growth and strengthen their presence in Asia.

Separately, PIDA predicts Taiwan's display panel sector to attain overall revenue of about NT$1.64 trillion (US$54.667 million) this year, for a 3.3% increase compared to 2013. The association indicated that insiders will likely gain steam mainly on 4K televisions, which will be increasingly sought-after worldwide in the year, especially when countries such as Korea and Japan have begun trial 4K broadcasting locally through cable television or satellite transmission.

PIDA's statistics, which show global shipment of 4K televisions surging over 900% YoY to some 640,000 units last year, further testify its optimism about the emerging segment. With ever more TV brands heavily promoting such models, the association noted, global shipment is expected to double this year.

As for photovoltaics, PIDA pointed out that market prospects are likely to brighten for Taiwanese suppliers in the year, as China has been actively encouraging local suppliers to focus on domestic sales instead of exports since the U.S. and Europe formally imposed punitive duties on China-made photovoltaic products, and to merge each others to restructure the industry.

Those ongoing transitions, PIDA emphasized, will not just make China a potentially lucrative, accessible market for Taiwanese suppliers, but also enable them to take over the market share that their Chinese counterparts have gradually lost in the U.S. and Europe due to antidumping punishments. (SC)