Death would die LED packaging companies in the future?

China LED Reuters] overall China LED packaging market is still growing, but the growth rate has continued to decline. The outbreak of 2014 overall packaging market benefited from lighting market growth close to 2, but with the lighting market demand growth slowed, while others such as backlight, flash demand continued to decline, Chinese LED packaging market is also facing risk demand underpowered.

From the supply side, the euro, the yen, the relative devaluation of the RMB won several major areas of LED currency continued, resulting in the cost of imported LED the relative decline of local enterprises suffered price competition is continuing to strengthen. Even the relative strength of the dollar, but CREE has long been localized production, and Lumileds is a comprehensive process of manufacturing in China, the cost and price are also close to the local enterprises.

Under such circumstances, China's packaging enterprises, especially small and medium packaging enterprises and how to participate in the competition?

The principle of competition between small enterprises and large enterprises is that large enterprises need large scale, limited size, large enterprises because of the high fixed costs, there is no cost advantage. For example, you go to a big company, said: I want to order a 300K brightness a color temperature of LED, then there are many specific requirements, the other one, must be politely refusing your order, because the system is not for large enterprise service small orders exist, but if you go to a small company. As long as the profit right, the other party may be very willing to treat you this order.

General manager of Samsung LED China District Mr. Tang Guoqing according to Premier Li Keqiang's "Internet +" concept first proposed LED industry "LED +", corresponding to the "Internet +" to promote national innovation innovation is supposed to LED plus advocates is to find new and innovative applications of growing space for the LED industry. So what are these new spaces?

According to LEDinside LED, the innovation value is in UV, IR, VLC, LED these new plant lighting applications, because this kind of innovation is really open to the entire LED industry development space LED 2 applications, with the traditional lighting function for the demands of the single LED 1 generation, the final cycle of death just enter the price war, is not worth imitating and encouragement.

The industry may have friends will ask, why not LED plus contains CSP, the author admits that the products will form CSP as the past several important packages, in the next few years may be swept the market, is a very important trend. But in essence, this innovation is still in the original lm/$upgrade path, or simply take some other package form of market share, not to expand the industry living space, two did not reduce competition pressure. Even if it's $1 2500lm, there's nothing to do with it.

The core problem is that the lighting industry in the end may be there is a demand for the ceiling industry. The human need for speed is no limit, so the semiconductor chip can improve the performance, continued to reduce costs; the demand for energy is infinite, so even if the solar and other clean energy because of the cost will be temporarily extended resistance, but when the cost dropped after the needs of the future space is infinite. However, human demand for lighting is diminishing marginal utility, the dark house, a little bit of light will make people feel very bright, the marginal utility is great, but in a very bright room, more out of the light will only make people feel suffocated, lighting the light pollution, this time. Marginal utility becomes negative.

LED lighting are now the situation is different from a few years ago, the past cost of LED is higher than other light sources, each LM / USD to enhance innovation to promote the LED has more advantage in competition with other alternatives, one by one, grab the other light source market. But now, the cost of the LED light source has defeated most of the other type, now the LED industry's biggest rival has become the past LED industry, if we can replace the LED place, are almost the same, and also not bad, then the new demand has not appeared. Similarly, LED today is coming in and out of the competition in the LED industry, today's LM price ratio advantage very much, will only make the industry demand faster approaching ceiling, but is that the future of the market space shrinking faster.

Not seek death will not die, die will die. If the whole industry innovation also reduces the cost, the price competition on the road to go on, that the industry is not what the future.

For other application scenarios and LED space in addition to outside lighting, including but not limited to the above mentioned but UV, IR, VLC, LED and other new applications of plant lighting is in the age of 2, regardless of the size of enterprises in this industry, regardless of position of the practitioners of common tasks and mission. (text / China LED network senior analyst Wang Fei)

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