Ye Yinfu: Subsidy reduction, Taiwanese LED industry will return to order within 3 years

The LED industry is in turmoil. Although short-term prices no longer decline, it still faces the dilemma of making profits difficult. Ye Yinfu, chairman of Taiwanese listed company Everlight, is not pessimistic about the long-term prosperity of the LED industry. He said that with the reduction of mainland subsidies, unfair competition in the industry will gradually be eliminated and order will be restored within three years.

However, with regard to the boom that only has half a year left this year, Ye Yinfu said that the uncertainty of the global boom has affected the visibility of Taiwanese factories in receiving orders.

Ye Yinfu pointed out that the rise of mainland manufacturing bases will not only have an impact on Taiwan's manufacturing and technology industries, but also have an impact on the global supply chain environment. Therefore, in the face of the rise of mainland supply chains, Taiwan does not need to overexaggerate, "because the whole world is affected." Global trade began earlier than on the mainland, and mutual trust with exporting countries is relatively solid. Taiwan cannot be limited to itself.

Ye Yinfu is still very confident about the future. In addition to the overall competitiveness of Taiwan, even the LED industry it belongs to is also viewed positively. This is mainly because despite the current unfair industrial competition, the mainland government still provides subsidies to mainland LED factories, causing the industry to fall into unfair competition. However, as the LED industry is no longer included in the cultivation industry in the 13th Five-Year Plan, the amount of subsequent subsidies is expected to decrease year by year.

The government has provided high subsidies every year since the 11th Five-Year Plan included the LED industry as a key development industry. This has led to the LED industry entering an unfair situation of serious price competition, and Taiwanese manufacturers have suffered greatly as a result. Ye Yinfu pointed out that the central government's subsidies for the LED industry have recently been reduced, but local governments still have programs to continue subsidies, but they are far less than in the past and only target one or two specific companies.

Ye Yinfu expects that unfair competition in the LED industry will gradually disappear. It is expected that the industry will return to order within three years. If Taiwanese manufacturers can survive this elimination competition, they can usher in a new order. This is mainly due to the evolution of LED technology and the expansion of application fields to the Internet of Things optical market. There are still diversified application markets to be developed, and Taiwan is expected to welcome new opportunities.