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International Journal of Photoenergy
Volume 2014, Article ID 735983, 11 pages
Review Article

Competing in the Global LED Industry: The Case of Taiwan

Department of Industrial Education, National Taiwan Normal University, No. 162, He-Ping E. Road, Taipei 106, Taiwan

Received 2 April 2014; Revised 19 May 2014; Accepted 19 May 2014; Published 5 June 2014

Academic Editor: Ho Chang

Copyright © 2014 Yu-Shan Su. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.


Light-emitting diode (LED) is a very essential application for energy-savings nowadays. The revenue of the Taiwan LED components industry is ranked top one in the world, followed by that of Japan and South Korea. Based on the advantage of their electronics industry, Taiwanese LED companies create a unique model to compete with the international firms. Large international LED companies achieve economies of scale by vertically integrating their operations. Taiwanese LED companies specialize and achieve an optimal efficiency by vertically disintegrating across the upstream, midstream, and downstream sectors in the value chains. Taiwanese LED companies create economies of scale and economies of scope through a complete industrial value chain.