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Osram have agreed to maintain ties in the areas of sales

Increasing environmental awareness has focused attention on LED lighting as a sustainable product. Especially following the Great East Japan Earthquake in 2011, the adoption of LED lightings has accelerated in Japan as a means of saving energy. Now that advances in led linear high bay light have created needs to integrate lamps and lighting fixtures, the joint venture relationship between Mitsubishi Electric and Osram will be constructively dissolved in the process of the merger. However, in consideration of the solid 23-year relationship, Mitsubishi Electric and Osram have agreed to maintain ties in the areas of sales and production, and continue to be strategic global partners in the lighting business.

Mitsubishi Electric's new lighting company will handle a wide variety of products, from lamps to lighting fixtures, which will strengthen Mitsubishi Electric's capabilities to satisfy market demands and offer customer solutions. The company will expand its product lineup by enhanced development capabilities realized through the integration of resources for marketing and development. It will also strengthen product development, mainly for led high bay light products, through the combination of technological synergies and cooperation with Mitsubishi Electric's R&D centers.

According to industry executives, chipmakers Epistar and Formosa Epitaxy Inc. have sold out their capacities for the second quarter while productions at packagers Evelight and Unity Opto Technology Co., Ltd. are approaching full capacity. Harvatek Corp. has won contracts to supply LED backlights used in iPads while Opto Tech Corp. has secured subcontracts from Sharp. According to Unity Opto executives, the company has recently landed considerable orders from customers planning to replace traditional lamps with LED lamps in offices and commercial sites. They estimated vigorous LED replacements for traditional lamps will start in June this year.

Hai pointed out that inquiries for the said products from Japanese customers are expected to keep increasing in the short term. And the company is optimistic about business outlooks in the second quarter of this year.
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