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Green Photonics Industry in Taiwan

光電科技工業協進會

林穎毅 執行長特別助理murphy@mail.pida.org.tw

第十五屆台馬經濟聯席會議

The 15th Taiwan-Malaysia Joint Economic Conference

• 20th April, 2015

• 台北世貿中心聯誼社

Mr. Murphy Lin

Special Assistant to CEO

Photonics Industry & Technology

Development Association (PIDA)

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Taiwan provide OEM/ODM solution

Source: Business Week Website, Invest in Taiwan Website

Comprehensive Industrial

• Cluster Number one in

“World Competitiveness

Report 2008-2009” for

industrial cluster development

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Photonics

Industry

Photovoltaic - Crystalline Silicon Materials - Thin Film Solar Cells - PV Cell Modules - PV Power System

FPD (Flat Panel Display) - FPD Equipment - LCD Material & Component - TFT-LCD Panel & LCM - TN/STN-LCD - Touch Panel - PDP, OLED, E-paper, 3D

Optical Storage - Optical Disc Drive & Player - CD, DVD, BD Optical Disc

Bio-photonics - Medical imaging: - Bio-photonics sensor - Optical therapy

Precision Optical Lens & Module (for 3C products) - Optical Glass / Plastic Material - Lens Module - Compact Camera Module

Optical Fiber Communication - Optical Fiber & Cable - OFC Components - OFC Equipment

Image Sensor & I/O Devices - CCD, CMOS, PD - Scanner, Bar Code Reader, Fax - Laser Printer, Copier - DSC, Camcorder

LED & Lighting Application - LED Epi & Packaging - LED Lamp

Photonics Industry Categories

LASER - CO2 / HeNe Lasers - Fiber LASER - LASER Diode - Material processing machine

Source: PIDA, 2014 4

Outline

• Overview of the Worldwide Photonics Market and

Taiwan Photonics Industry

• Worldwide LED Market & Taiwan LED Industry

• Worldwide PV Market & Taiwan PV Industry

• Photonics- Lighting Up the Future

• Summary

• Taiwan- The Supplier of Optoelectronic Components

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Information

Service

International

Cooperation

Promotion

Efforts Publication

Industry

Research

Photonics Industry & Technology Development Association

Since 1993

• Exhibition

• Seminar

• Membership Service

• Project Execute

• Consulting Service

Overview of Worldwide Photonics

Market & Taiwan Photonics Industry

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2011 2012 2013 2014(F) 2015(F) 2016(F)

Biophotonics 100.8 113.8 120.9 129.3 138.4 147.5

Precision Optical Lens & Module 14.2 14.4 13.5 14.3 15.3 16.4

Laser Light Sources 7.5 7.7 8.1 8.6 9.5 10.4

Optical Fiber Communication 27.2 30.0 33.0 34.9 37.9 41.8

Optical Storage 10.1 8.5 7.6 7.0 6.5 6.0

Image Sensor & Optical I/O Devices 49.6 48.7 46.5 45.9 45.8 46.3

Flat Panel Display 159.3 166.0 173.8 182.0 190.4 199.1

Photovoltaic 197.1 146.7 149.7 168.7 199.4 223.4

LED & Lighting Application 20.0 31.2 37.9 46.8 55.9 65.5

Total Value 586 567 591 638 699 756

Growth Rate 10% -3% 4% 8% 10% 8%

-4%

-2%

0%

2%

4%

6%

8%

10%

12%

0

100

200

300

400

500

600

700

800

Worldwide photonics industry scale will reach 638B USD

The Scale of Worldwide Photonics Production Value 2011~2016

Source: PIDA, 2014

Unit: $ Billion USD

* The CAGR is 5% during year 2011~2016 lower than the rate 10% of year 2010s.

9 Sources: BMBF, SPECTARIS, VDMA, ZVEI (pub.)

Global photonics markets: Key players and key markets

• Key Players (2013) – Japan: 21% mkt share

– China: 21%

– Taiwan: 12 %

– Korea: 12%

– Europe: 18%

• Key Markets – Displays 25% mkt share

– PV 14%

– IT 17%

– Lighting 6%

Optical components

Safety and defense technologies

Medical technology and life science

Communications

Measurement and automated vision

Production technology Displays

Lighting

PV

IT

China

Taiwan

S. Korea Japan

USA/Canada

Europe

Germany

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2011 2012 2013 2014(F) 2015(F) 2016(F)

Biophotonics 1.0 1.1 1.2 1.3 1.3 1.4

Precision Lens 2.6 2.7 2.8 3.2 3.6 4.0

Laser Application 0.3 0.7 0.7 0.8 0.8 0.9

OFC 0.8 0.9 1.1 1.3 1.6 1.9

Optical Storage 4.8 3.7 3.3 3.0 2.7 2.5

Sensor & I/O Devices 4.9 4.5 3.4 3.6 3.7 3.9

FPD 55.9 51.5 48.6 50.4 51.9 53.5

Photovoltaic 6.7 5.0 5.0 5.7 6.7 7.5

LED & SSL 4.8 4.8 4.9 5.7 6.7 7.5

Total Value 82 75 71 75 79 83

Groth Rate 13% -9% -5% 5% 6% 5%

-10%

-5%

0%

5%

10%

15%

0

10

20

30

40

50

60

70

80

90

Taiwan photonics industry scale will reach 76B USD

The Scale of Taiwan Photonics Production Value 2011~2016

Source: PIDA, 2014

Unit: $ Billion USD

* The CAGR is 1% during year 2011~2016 lower than the rate 20% of year 2010s.

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Production Value 3.4 4.5 5.8 6.4 9.7 11.8 14.3 19.6 28.3 41.4 48.2 60.9 59.2 51.3 72.2 82.0 74.9

Growth Rate 16% 34% 30% 10% 52% 21% 22% 37% 44% 46% 17% 26% -3% -13% 41% 13% -9%

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

0

10

20

30

40

50

60

70

80

90

Taiwan industry grew with worldwide market

Unit: $ Billion USD

Taiwan Photonics Production Value Trend 1996~2012

Source: PIDA, 2014 11

Worldwide LED Market &

Taiwan LED Industry

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2011 2012 2013 2014(F) 2015(F) 2016(F)

LED Lighting 6,123 13,217 18,806 25,128 31,525 38,675

LED Packaging 13,911 17,963 19,047 21,652 24,354 26,866

Total LED 20,034 31,180 37,854 46,780 55,879 65,541

Growth Rate 33% 56% 21% 24% 19% 17%

0%

10%

20%

30%

40%

50%

60%

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

Unit: $ Million USD

The Worldwide Market of LED & Lighting Application 2011~2016

Source: PIDA, 2014

The scale of worldwide LED industry will reach 47B USD with CAGR 27%

* The LED lighting market appeared growing rapidly since year 2012.

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2011 2012 2013 2014(F) 2015(F) 2016(F)

LED Lighting 138 493 502 626 862 1,127

LED Packaging 2,899 2,839 2,968 3,363 3,829 4,214

LED Epi & Wafer 1,800 1,513 1,443 1,707 1,961 2,197

Total LED 4,837 4,845 4,913 5,696 6,651 7,538

Growth Rate 5% 0% 1% 16% 17% 13%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000Unit: $ Million USD

The Production Value of Taiwan LED Components & Lighting 2011~2016

Source: PIDA, 2014

The scale of Taiwan LED industry will reach 7B USD with CAGR 9%

* The mainly LED manufacturers include Epistar, Lite-On, Everlight, Delta…in Taiwan.

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The trend of worldwide lighting market by lighting technology

Penetration Rate 2010 2012 2013 2014(E) 2015(F) 2020(F)

Incandescence / Others 34.4% 25.5% 21.6% 18.2% 15.2% 6.1%

Fluorescence 61.7% 62.2% 61.4% 59.9% 57.5% 27.2%

LED Lighting 3.8% 12.1% 16.9% 21.6% 26.8% 61.4%

OLED Lighting 0.1% 0.1% 0.2% 0.3% 0.6% 5.3%

Lighting Market 2010 2012 2013 2014(E) 2015(F) 2020(F)

WW Lighting Market 98,585 109,023 111,587 116,204 117,784 129,519

WW LED Lighting 3,775 13,217 18,806 25,128 31,525 79,559

Unit: $ Million USD

LED is expending penetration rate in lighting market gradually

* The penetration rate of LED in lighting market’s revenue will surpass 20% in year 2014.

Source: PIDA, 2014 15

Worldwide PV Market &

Taiwan PV Industry

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Worldwide Photovoltaic Industry Production Value 2011~2016

Source: PIDA, 2014

The scale of worldwide PV industry will reach 169B USD with CAGR 3%

* Worldwide PV industry need time to recover after European debt crisis in year 2012.

2011 2012 2013 2014(F) 2015(F) 2016(F)

PV Power System 86,800 86,292 91,469 105,189 126,226 138,849

PV Modules 45,815 30,225 29,191 31,200 35,712 41,472

Silicon / Thin Film Solar Cells 30,660 16,082 16,453 17,860 21,432 25,042

Crystalline Silicon Materials 33,806 14,094 12,609 14,487 16,069 18,087

Total Potovoltaic 197,081 146,693 149,722 168,736 199,439 223,449

Growth Rate 16% -26% 2% 13% 18% 12%

-30%

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

-

50,000

100,000

150,000

200,000

250,000

Unit: $ Million USD

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The Production Value of Taiwan PV Industry 2011~2016

Source: PIDA, 2014

The scale of Taiwan PV industry will reach 6B USD with CAGR 2%

2011 2012 2013 2014(F) 2015(F) 2016(F)

PV Power System 2,946 2,914 3,073 3,543 4,246 4,674

PV Modules 1,555 1,021 981 1,051 1,201 1,396

Silicon / Thin Film Solar Cells 1,041 543 553 602 721 843

Crystalline Silicon Materials 1,147 476 424 488 541 609

Total Potovoltaic 6,689 4,954 5,030 5,683 6,709 7,521

Growth Rate 12% -26% 2% 13% 18% 12%

-30%

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000Unit: $ Million USD

* The main players include SAS, NSP, Motech, Gintech, E-ton Solar, Solartech, Inventec…

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The export & domestic market of solar cell in Taiwan

3.7

1.1 0.9

0.4 0.3 0.3

1.4

0

0.5

1

1.5

2

2.5

3

3.5

4

China Japan Germany America Malaysia United

Kingdom

Others

222.4 352.4

560

874

1120

1370

1620

1870

2120

0%

20%

40%

60%

80%

100%

0

500

1,000

1,500

2,000

2,500

Cumulative Installed Capacity YoY%

Taiwan Solar Cells Export Volum by Region 2013 Taiwan cumulative installed PV capacity

Unit: $ Giga Walt

Source: PIDA, 2014

Unit: $ Mega Walt

other, 4.5 Germany, 3.5

Italy, 1.5

France, 1

UK, 1.5

Belgium, 1

Rest of EU,

1.5

US, 5.5 Japan, 9

China, 10

Australia, 1.5 India, 1.5

2014's World PV Market

• 2014 Taiwan PV industry was influenced by the Antidumping and Countervailing Duties between US & China.

• Taiwan has a project of Million Solar Roof for domestic market.

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Photonics- Lighting Up the Future

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“Optics & Photonics, Essential Technologies for Our Nation,”

Source: SPIE

1. Communication, Information Processing & Data Storage

• Optical Fiber Communication- Silicon Photonics & EPIC

2. Defense & National Security, Area Surveillance

• Object Identification / Free-space Communication / Laser Strike

3. Energy → Photovoltaic / Solid-state lighting

4. Health & Medicine → Biophotonics (medical image, sensing)

5. Advance Photonics Measurement & Application

6. Advance Manufacturing → 3D Printing, laser system

7. Strategic Material for Optics

• Energy related materials for LED, photovoltaic

8. Display → OLED

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Photonics Impacts Most Areas of our Lives

Healthcare – Early diagnosis of diseases through new photonics detection

methods

Energy Efficiency & Eco-efficient products – LEDs, OLEDs & intelligent light management systems can save

2/3 of electricity for lighting – Organic photovoltaics

Safety & Security & Eco-efficient products – Smart sensors for automotive safety

Manufacturing: Eco-efficient design & production – Laser processing enables new lightweight structures & designs – Laser drilling: 25,000 holes / s for efficient solar cells

Inclusion – High speed fiber networks with multi-terabit capacity are the

backbone for web 2.0 & 3.0 products & the knowledge society

Source: Photonics 21

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• The scale of worldwide photonics industry is about $638 billion USD with a

5% CAGR during year 2011~2016.

• The production value of Taiwan Photonics industry reaches to $75B USD

with 5% growing this year, and expected a better growing rate in the next

year.

• Majority of Photonics application markets are gradually mature; their

growing trend poses likely following macroeconomic.

• There must be innovative application and commercialized advanced

photonics technology to stimulate the next growth.

• We expect that the application of LED lighting, new photovoltaic

technology, AMOLED, bio-photonics (those apply on plant factory, energy,

smart wearable device, wealth care, IoT) can create new markets.

Summary

Taiwan- The Supplier of

Optoelectronic Components

for Total Solution @ One-stop shop

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Photovoltaic - Crystalline Silicon Materials - Thin Film Solar Cells - PV Cell Modules - PV Power System

FPD (Flat Panel Display) - FPD Equipment - LCD Material & Component - TFT-LCD Panel & LCM - TN/STN-LCD - Touch Panel - PDP, OLED, E-paper, 3D

Optical Storage - Optical Disc Drive & Player - CD, DVD, BD Optical Disc

Bio-photonics - Medical imaging: - Bio-photonics sensor - Optical therapy

Precision Optical Lens & Module (for 3C products) - Optical Glass / Plastic Material - Lens Module - Compact Camera Module

Optical Fiber Communication - Optical Fiber & Cable - OFC Components - OFC Equipment

Image Sensor & I/O Devices - CCD, CMOS, PD - Scanner, Bar Code Reader, Fax - Laser Printer, Copier - DSC, Camcorder

LED & Lighting Application - LED Epi & Packaging - LED Lamp

Well structure in Taiwan Photonics Industry

LASER - CO2 / HeNe Lasers - Fiber LASER - LASER Diode - Material processing machine

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• Compound Semiconductor • Optoelectronics Devices • Optical Input / Output & Storage Device • Laser Applications • Vacuum Coating • Precision Instruments / Equipment • Precision Optics

• Optical Lenses / Module • Optical Components • Coating Products • Optical Materials • Manufacturing Equipment

• LED / OLED Light Source, Package / Module/ Engine • LED / OLED Lighting Fixture • LED Applications • LED / OLED Materials • LED / OLED Equipment

• Photovoltaic(PV) System and Installations • Materials • Solar Integrated Product and Applications • Production Equipment • PV Module • Solar Cell • PV Projects

Special Zone • Bio-photonics • Advanced Research • Laser Application • 3D Printing

3D Printing systems & equipment 3D measurement & software 3D scanner Reverse Engineering

• LCD • Material/ Components • LCoS / Projector • Manufacturing Equipment

High Tech Platform- Photonics Taiwan

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Serial activities in Photonics Taiwan

• Vice President Wu attended the opening ceremony ↑ • Welcome Reception Party ↓

• Exhibitors- 578 companies (475 domestic & 103 overseas) with total 1,216 booths. • Over 28,000 visitors

• Over 100 topics seminar ↑ • Procurement Meeting ↓

Welcome to Photonics festival in Taiwan

June 2015

• 16th June, Tuesday ~ 18th June, Thursday, 2015

• Taipei World Trade Center, Nangang Exhibition Hall

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