LED lighting market is booming but price competition has been causing profits reduce. According to this situation, Taiwan-based LED firms propose to improve technology and enter the automotive lighting market.

Lite-On Automotive Corporation, the subsidiary of the Lite-On Group, has been focused on the automotive lighting market. The Lite-On Group got revenues from automotive applications in 2012 were about NT$8-9 billion (US$265-298 million) and it expects to reach NT$10 billion in 2013.

Lite-On pointed that the automotive lighting market is a niche market with higher profits. Although the automotive components supply chain is relatively closed and lighting verification time is longer, if the firms enter the supply chain, the partnership will be very stable. Lite-On Automotive Corporation has been cooperating with many automobile brands from U.S., Europe, Japan, and Mainland China. In particular, the firm attracted new customers from Japan and China in 2013.

Taiwan-based LED manufacturer Unity Opto stated the firm's automotive lighting products have been in the process of verification by Europe-based brands. The firm hopes to obtain verification in 2014.

LED chipmaker Formosa Epitaxy recently launched its newest product, package free chips (PFC), which can be used for LED automotive front lighting. The firm said that the LED chips used within LED automotive front lighting require high brightness. Shipments of automotive front lighting with Formosa Epitaxy LED chips inside began in small amount in June and the number is expected to increase in July.

Laster Tech, a Taiwan-based LED automotive lighting module design and manufacturing firm, has been a supplier for Shanghai Koito Automotive Lamp. The latter firm has a 30% market share in China. Through the cooperation with Shanghai Koito, Laster has been supplying products for brands such as Volkswagen, Toyota, and Honda.