PIDA commented that LARGAN accounts for 50% of production output for the photonics industry in Taiwan, and with a dramatic growth rate of 22% in 2015, Taiwan’s overall output value growth was maintained. However, because LARGAN's revenues declined by over 13% in 2016, the precision optics output in Taiwan also declined by 10% in 2016, reaching NT$95.7 billion and putting an end to a streak of uninterrupted record growth since the financial crisis in 2009.

Nevertheless, the output value of the global photonics industry is also in a state of decline with an output value reaching US$11.1 billion in 2016, which was an 8% reduction from the previous year. The main reason for this is that digital camera output has been continually declining and smart phone growth is also gently dipping, and consequently the output value is receding.

Even so, PIDA believes that although LARGAN's revenues have declined, their profits are still impressive and they have a competitive advantage in the high-end camera lens market. Overall, after experiencing the transition of a low-tide lull, profits are expected to continue to improve.

(TR/ Phil Sweeney)