cens logo

Taiwanese Manufacturers Gain orders due to the Outbreak of Novel Coronavirus (2019-nCoV)

Feb 05, 2020 | By CENS

The outbreak of a new coronavirus (commonly known as Wuhan pneumonia) has intensified. Wenzhou and Yiwu cities in Zhejiang have successively announced that they will be closed down. The second LED brother Huacan Optoelectronics, a major LED manufacturer in Yiwu, will be impacted. Huacan Optoelectronics' LED chip global production capacity accounts for more than 11% of the world 's total production capacity, Yiwu plant accounted for 50% of production capacity, production in this plant will be blocked, market supply will be greatly reduced, Jingdian, Longda and other Taiwanese factories are expected to welcome orders and increase production capacity Utilization and increase gross profit margin.

Industry insiders said that the production capacity of mainland LED chip factories accounted for nearly 60% of the world's production capacity. The leading Sanan Optoelectronics and the second brother Huacan Optoelectronics accounted for 33% and 20% of the production capacity, which means that Huacan's global production capacity accounted for 11.8%. Huacan Optoelectronics, which mainly produces LED chips, has factories in Wuhan, Yiwu, and Suzhou, and Yiwu is the company's major production town.
Huacan Optoelectronics set up a factory in Yiwu in 2017 and started construction in two phases. The first phase has a total annual production capacity of 1.92 million 4-inch wafers, which is equivalent to 2.76 million pieces, which translates into monthly production capacity of 160,000 and 640,000. At the end of 2017, the construction of the second phase of the project was started, which increased the monthly production capacity of 4 inch Lei chips to 250,000 pieces, and about 2 inch Lei chips also rose from 640,000 to 1 million pieces.

Based on this estimate, Huacan Optoelectronics Group's monthly production capacity of 2 inch Lei wafers is about 2 million pieces, and the proportion of Yiwu factories is as high as 50%. According to the supply chain, closing Yiwu in Yiwu may seriously hit the production scale of Huacan Optoelectronics.

From the perspective of supply chain analysis, from the perspective of Jingdian, the monthly production capacity of 2 inch Lei wafers is about 1.6 million, and the ratio of Taiwan and China 's production capacity is about 6: 4. The season is expected to be off-season.

In this regard, Jingdian said that it is understanding the industry dynamics. If the time is prolonged, it may indeed limit the global LED chip production capacity. Longda believes that everything can only be determined after the resumption of work in cities in the mainland.

The legal person said that in recent years, the mainland LED industry has continuously increased production capacity, and the industry has oversupplied. With the impact of Wuhan pneumonia, the production base of Huacan Optoelectronics in Yiwu may be damaged and the production capacity may be reduced. Taiwan LED factories such as Jingdian, Everlight, and Longda are expected to increase their utilization rate, which will improve the gross profit margin.

The outbreak of a new coronavirus (commonly known as Wuhan pneumonia) has intensified. The outbreak of a new coronavirus (commonly known as Wuhan pneumonia) has intensified.
As for the overall LED market situation, the legal person believes that it is still necessary to observe the pneumonia epidemic situation in Wuhan. On the whole, the Mini LED market is worth looking forward to this year. Taichung 's Mini LED R & D is leading the industry and related products are produced in Taiwan. It is expected that the volume of LED products will be positive, which will help the operation positively.


Industry Reports

(File cabinets, photo courtesy of Chyn Fuh Enterprise Co., Ltd.)

Taiwan's Furniture Industry Amid the COVID-19 Pandemic

Oct 16, 2020

The COVID-19 pandemic has deeply affected global and Taiwan's political and economic landscapes. Unlike some industries, the furniture sector did not escape unscathed, facing a squeeze from management and costs. While Taiwan continues to implement a stable, successful outbreak response, the industry has also misjudged the economic downturn duration. The furniture industry has yet to fully recover...


2020 Energy Vision Summit for Green Energy to Kick off in Nov.</h2>

2020 Energy Vision Summit for Green Energy to Kick off in Nov.

Oct 14, 2020

The Taiwanese government has pledged to lead the effort in further developing the sustainable green economy, which is among the sectors highlighted in the Tsai administration's "5+2 Innovative Industries Initiative." Economic Daily News is hosting the "2020 Energy Vision Summit - Green Energy 2.0" on November 11. As one of the government's core policies, improving the island's energy self-suff...


U.S. Biz Day to Kick off On Oct. 15 Virtually with 18 American Firms</h2>

U.S. Biz Day to Kick off On Oct. 15 Virtually with 18 American Firms

Oct 12, 2020

According to Economic Daily News, the 2020 U.S. Business Day is slated to open this Thursday (Oct. 15), citing sources that a total of 18 buyers, including Amazon, will be attending the conference. American firms with backgrounds in electronics, ICT, auto parts, rubber products, and textiles will be attending. The Taiwan External Trade Development Council primarily aggregated Taiwan's attendin...



Industry In-Focus

Foxconn Engages European Auto Parts Talks for Tier 1 and EV Market Entry </h2>

Foxconn Engages European Auto Parts Talks for Tier 1 and EV Market Entry

Oct 20, 2020

Foxconn is looking to explore cooperation with European tier 1 auto parts suppliers in developing 3D auto-use curved glass covers. The electronics manufacturer is also reportedly engaging in talks with European auto firms to make curved, one-piece system consoles and dashboards. In a bid to diversify its product line, Foxconn's plans to enter the lucrative auto parts industry began with provid...


China's Strong Auto Market to Buoy Taiwan's Related Industries</h2>

China's Strong Auto Market to Buoy Taiwan's Related Industries

Oct 19, 2020

Taiwan's auto parts market has seen positive impacts as the Chinese automotive market continues to grow in its sixth consecutive month. Hotai Motors and Yulon Nissan Motor are the two significant firms enjoying the leverage. The island's related industries are benefiting from the strong performance of China's automotive market. Industry members say as long as competitive Taiwanese firms mainta...


Foundry Supply in a Pickle Amid Surging Demand Due to Pandemic and Restrictions</h2>

Foundry Supply in a Pickle Amid Surging Demand Due to Pandemic and Restrictions

Oct 19, 2020

Industry experts expect to see challenging times ahead for production in the foundry sector, forecasting that the current situation will not let up in the short-term and warns of unbalanced supply-demand next year. During the pre-pandemic era, IC design firms say clients usually made urgent orders to avoid having to manage inventory. Yet, considering limited foundry production volume, clients ...



Supplier News

(Electric Vehicle-Photo courtesy of CENS)

Microtest: Precise, Reliable, and Always Improving

Oct 16, 2020

Eyes Stake in 5G Industry with Impedance Analyzer 6632 With greater demand for electronics and manufacturers' need for more precise and diverse applications than before, testing equipment that ensures the reliability, safety, and quality of parts are in hot demand. Founded in 1993, Microtest Corp. is a professional maker and developer of high precision and automatic testing and measurement ins...


(Photo courtesy of Ho Shuan Enterprise Co., Ltd.)

Ho Shuan is Your Choice for Educational Furniture and More

Oct 16, 2020

Insisting that its customers are always a top priority, Ho Shuan Enterprise Co., Ltd.'s R&D team provides the best educational furniture and peripherals, computer tables, and desks to meet all customer requirements. Established in 1986, Ho Shuan has experienced recent sluggish local market performance, but eventually rebounded and came back better than ever. Despite difficulties, the firm neve...

HO SHUAN ENTERPRISE CO., LTD.


(S16-M01 Short Swivel-Handle Cabinet, photo courtesy of Chyn Fuh Enterprise)

Chyn Fuh: A Quality OA Metal Furniture Maker

Oct 16, 2020

Chyn Fuh Enterprise, founded in 1993, entered the market with the sole aim of offering other OA metal furniture options for customers. Since its inception, Chyn Fuh has focused on designing and producing OA metal furniture, providing various office use products, including file cabinets, storage cabinets, office desks, and different assistive metal products. Chyn Fuh partook in many government ...

CHYN FUH ENTERPRISE CO., LTD.



Insiders' Views

Caption: Pictured from front row, third right, Changhua County Government Economic Affairs Department Director Liu Yu-ping, County Magistrate Wang Huei-mei, Secretary Chen Bo-tsun pose in front of the exhibition booth. (Photo provided by CHCIA)

Changhua County Government Shores up Biz-Matching to Global Buyers

Nov 18, 2019

■Yang Feng-Chun In a bid to assist manufacturers in Changhua County to expand their market reach overseas against severe competition in the globalized market, Changhua County Government has been an active player in pushing for a makeover and innovation of its local small and medium-sized enterprises. This is done in hopes of establishing stronger connection with international markets. An ex...


Paul Master offers high-quality chassis and engines parts for passenger cars, trucks, and industrial trucks. (Photo courtesy of Paul Master)

Paul Master Builds Reputation with Auto Chassis and Engine Parts

Nov 18, 2019

Founded in 1980, Paul Master Auto Parts Co. is headquartered in Taiwan, a professional manufacturer of chassis and engines parts for passenger cars, trucks, and industrial trucks including forklifts. General Manager Terry Liang said the company has its own professional design department, which provides customized products and specifications for global buyers, including automobile steering and...

PAUL MASTER AUTO PARTS CO.


Nan Hoang Traffic Instrument Co., Ltd.</h2><p class='subtitle'>Taiwan First brakes Technology Co., Ltd. </p>

Nan Hoang Traffic Instrument Co., Ltd.

Taiwan First brakes Technology Co., Ltd.

Sep 04, 2019

Nan Hoang Traffic Instrument Co., Ltd is one of the major manufacturers of automobile friction materials in Taiwan and globally. Chairman Austin Cheng has implemented the double-arrow strategy this year - own brand of “YangPo” is adopted to focus on global channels while the “NHC brand focuses on improving market shares in global markets, such as Europe, America, Asia, Australia, and the Middle E...



Exhibition Highlights

Gearing up for Post-COVID Recovery, THS Coming Soon in October</h2>

Gearing up for Post-COVID Recovery, THS Coming Soon in October

Oct 07, 2020

As the only hardware and hand tools trade show taking place this year globally, the three-day Taiwan Hardware Show (THS) will soon kick off on 13th October at the Taichung International Exhibition Center. Positive industry outlook for the post COVID-19 era has led to over 370 companies signing up as exhibitors, in a bid to gear up for a long-awaited economic recovery and plan the next strategic m...


Stable Development and Popular Fastener Show in China</h2>

Stable Development and Popular Fastener Show in China

Sep 11, 2020

Driven by market prospects, domestic and international exhibitors actively prepare International Fastener Show China in Shanghai on November 3-5, 2020. Suffering from global epidemic and quarantine nearly half year, exhibitions are hot and popular in mainland China. Thousands of visitors join and visit the exhibitions with inquiries, and are eager to know new technology. Domestic and inter...


2020 Medical Taiwan to Host In-Person and Virtual Events</h2>

2020 Medical Taiwan to Host In-Person and Virtual Events

Sep 10, 2020

2020 Medical Taiwan is slated to kick off on Oct. 15 to Oct 17 at Nangang Exhibition Hall 2. Aside from events at the show, show organizer Taiwan External Trade Development Council (TAITRA) is also hosting the “Medical Taiwan Virtual” online edition at the same time due to travel restrictions impacted by the COVID-19 pandemic. The virtual edition will present 200 exhibitors and over 700 medic...