LED lighting industry to respond to the crisis the best strategy to reduce costs"

LED if a light source can fully enter the field of lighting, the light source of the cost is the key, from the current perspective, different than the traditional LED products, product cost and price of 5~10 times, and the main technical indicators will further improve, continuously put forward adopting new structure, new materials, new technology, new technology, which will undoubtedly bring new the pressure for the cost of LED.

LED if a light source can fully enter the field of lighting, the light source of the cost is the key, from the current perspective, different than the traditional LED products, product cost and price of 5~10 times, and the main technical indicators will further improve, continuously put forward adopting new structure, new materials, new technology, new technology, which will undoubtedly bring new the pressure for the cost of LED. According to the requirements of the U.S. SSL program, in 2015 reached an integrated price of $2 /klm.

According to a survey of a number of LED companies, the majority of enterprises in the survival line around the fierce market competition will promote a new round of price decline, and how to gain a foothold in the crazy price war, cost reduction is one of the important factors that have the cost advantage of enterprises will have excellent survival ability and adequate the competition ability, so as to benefit from the long-term development of the industry.

The current price is still the biggest obstacle restricting the popularity of LED lighting. In fact, after in-depth comparison of LED and energy-saving lamps of the initial acquisition costs, saving costs, replacement of labor costs, we found that the overall cost of LED lighting is lower than the energy-saving lamps. LED universal lighting has failed to achieve universal, in the final analysis, the reason is still on the price. The same light intensity, the initial cost of LED lamps is almost two times the cost of energy-saving lamps. At the same time, subject to the actual use of LED is often less than its rated lighting time, its energy efficiency has not been recognized by the public.

LED manufacturers, especially in the middle reaches of the packaging manufacturers and downstream applications, in fact, is willing to cut prices in exchange for sales promotion. After the sale price can be increased, is conducive to the realization of the scale effect of the manufacturers, thereby enhancing the bargaining power of the upstream chip manufacturers, and ultimately to reduce the cost of hedging down the price to maintain the profitability of both manufacturers. From the Taiwan LED industry revenue changes, since 2011 after the Spring Festival, chip and package revenue continued to decline, and since the fourth quarter of 2011 began to accelerate the decline in 2011, 12 month decline rate reached the highest, chip revenue fell 31%, revenue fell nearly 11% package. Inventory, South Korea, Taiwan, mainland enterprises inventory are at historic highs, destocking process has not yet ended, the price of the product is likely to continue to decline. Despite the short-term demand for LED backlight pick up, nor is it enough to change the whole industry downturn. In addition, according to the survey report of the latest price LEDinside display, the fourth quarter of 2011 due to inventory clearing effect, LED average price decline of about 10%, outlook for the first quarter of 2012, after a quarter price fell sharply, with the introduction of new products, the average price is expected to decline in estimated quarter narrowed.

Reduce costs can be from the following aspects. The first is the scale of production and increase the rate of finished products, in this sense, the higher the revenue scale of the enterprise, the advantage is more obvious, related enterprises such as Sanan optoelectronics, honglitronic, nationstar etc.. The second is to reduce costs through technological innovation, which is divided into three sub levels, including reducing the cost of epitaxial wafers, reduce packaging costs, reduce the cost of sales. To achieve the integration of upstream and downstream enterprises, the greater the room for cost improvement. Domestic enterprises including Elec-Tech etc.. The equity investment projects to large-scale production of LED epitaxial films, covering the whole industry chain, as well as supporting sales channels, the same specifications of products, cost saving 10%-20%. The package cost and lamp cost depends on manufacturing capacity in the enterprise and management level, the leading enterprises including KingSun and REFOND etc..

To make the LED light source into the lighting field, the urgent need to solve the LED lighting system reliability and reduce the cost of the two major issues. Part of the LED lamps of each link, that is, epitaxial chip package, power supply, heat, light and other point of view, must be respectively reliability design and test, respectively reach the reliability index, in order to guarantee the reliability of the system, the LED lamp life up to 35 thousand hours. In terms of reducing costs, earnestly improve the rate of finished products, the scale of production at the same time, focus on technological innovation, especially in the epitaxial chip, package, the lighting design to continuous improvement and innovation, so that LED can greatly reduce the cost of the lamp, and in 2015 before the implementation of LED lighting sales price in 15 yuan /klm.