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The origin of this research was according to the rapidly rising challenging from China's manufactures to Taiwan's , this was due to China government's subsidies policy to cause the unfair competition. The author uses Taiwan's LED upstream industry as the example of research, firstly from collecting the LED industry status ,especially the financial outcome & external impact such as Government policy. For the Strategy aspect, applying lots theories from Michael Porter plus studies from other experts in LED industry to summarize out some workable strategies, hope it could provide some small helps to Taiwan's LED upstream companies to react the challenges to walk away from so-call "Taiwan's 4 most painful industries" situation, and also hope to provide some inspiration to other industries that facing similar big challenging from China's.
Taiwan's Led industry has a dramatically growth in the past 2 more decades owing to Global warming's enabling the imperative needs of Green energy & the cooperation between industry, Government & research institutions. However, nowadays Taiwan's LED industry faces difficulties & challenges one site from international tier 1 companies especially in IP (Intellectual Property Rights) such as Nichia, Philips，OSRAM，Cree etc., the other site from China's chasing , especially via nutrition from China Government's subsides policy in their 12th 5 year plan that LED industry became one of the strategy industry, plus China's huge local market, thus Taiwan LED industry faces severe challenges. This research stands on view of the leading company of Taiwan LED Chip company to study that under Tier 1& China's both challenges how to find workable strategies to continually grow. and list the suggested strategies as bellows:
1. Talent staff keeping & training: to strengthen R&D , product combination & speeding the new product developing.
2.Vertical integration & branding strategy: like LED lighting, LED fixtures.
3."Blue sea" product strategy: To develop new product categories from the same core competence,like Wide band gap device( Power Device ), the famous companies such as Transphorm, Cree、Infineon etc.
4.To enter New Emerging countries such as India, Russia
5. Splitting strategy: at last, if the product lines are in so-called Red-sea competition with benefit, then it will be suggested to split the departments either to sell or close, in order to reserve the resource to potential & with core competence fields.
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