Lite-On has set up a mergers and acquisitions unit to explore strategies for expansion. Lite-On is aggressively pursuing opportunities to cooperate with domestic and foreign automobile and component makers. Plans are also on the table to establish a multinational innovations group that would focus on important developments with LED (Light-Emitting-Diode) and LCD (Liquid-Crystal-Display) panels and potential applications for the automobile industry.

 

Since gross profit margins on LCD monitors are thinning, Lite-On says it has fixed its attention on five high-growth products that will serve as its primary axis for future competition: LED, power supply, imaging products, mobile phones, and mobile phone shells. Presently, LED, LCD, and power supply products comprise nearly 70% of the company's revenue. Company officials have indicated that their second production line might soon become antiquated, at which time, Lite-On plans to acquire further production capabilities by relying on accumulated capital and savings from low productions costs.

 

Lite-On has been working with lighting equipment makers in order to expand the scope of LED applications, and also has its sights set on courting carmakers as potential partners. Lite-On intends to increase investment in car navigation systems, automobile keypads, LED car lights, small-size LED monitors, car radar systems, and DVD for use in automobiles.