Why LED can not get out of the price war vicious circle

2013, the price seems to be the main theme of the development of LED lighting industry, the rapid decline in prices, is conducive to the rapid rise in LED lighting penetration, can also be seen as a necessary process to promote the development of the industry. In fact it is not difficult to find, behind the rapid development of LED and LED the price tide rise, with countries strongly support the important factors of the industry. In addition to government subsidies, but also thanks to the development of its own technology maturity and continuous innovation and development of domestic independent research and development. As the last link of the price chain of consumers, its price requirements are also contributed to the continuous production of low cost factory power.

Government policy subsidies to promote LED prices fell

In June 2009, the national development and Reform Commission, the Ministry of Finance organized the implementation of the "energy-saving products Huimin project, development and Reform Commission six ministries jointly issued the" opinions "the development of semiconductor lighting industry, energy saving and environmental protection industry was designated as one of the seven emerging industries in 12th Five-Year" plan.

In the call of the central policy, local governments to the LED industry actively dished out an olive branch, showing a high degree of enthusiasm. Development of LED lighting products to promote financial subsidies to the development plan of Shenzhen city LED industry; Wuhu municipal government and enterprises signed an agreement to buy LED MOCVD enterprises the main production equipment subsidies; in addition to financial subsidies for equipment, local government procurement contract with LED company signed, in order to solve the problem of the fastest and best selling LED product. Such subsidies have sprung up.

In order to further expand consumer demand, improve energy efficiency, promote industrial upgrading, encourage units and individuals choose energy-efficient LED lighting products in May 16, 2012, the State Council passed the "national basic public service system of" 12th Five-Year "plan", decided to arrange 26 billion 500 million yuan of financial subsidies, start the promotion with energy saving standard household appliances, including 2 billion 200 million yuan to support the promotion of energy-saving lamps and LED lamps. Policy not only to benefit the home appliance industry, but also to promote the use of LED in the lighting industry. In other words, 2 billion 200 million yuan of government subsidies to accelerate the decline in LED prices.

The technology of products is becoming more and more mature

A few years ago, compared to the price of about 3 yuan of ordinary incandescent lamps and the price of more than $10 in energy-saving lamps, LED lamps to the minimum price of tens of dollars. In recent years, both the industry and ordinary consumers have found that LED lamps are getting cheaper. In addition to government subsidies, but also thanks to its own technology development and maturity. LED light efficiency in continuous improvement, and break through the limitations of a single color, white light into the light. Because the solid semiconductor material is used as the luminescent material, the carrier in the semiconductor is compounded after the power is added, thereby causing the photon emission to emit visible light.

Called "the financial" bloggers had to publish comments on Sina said: "PHILPS in Taiwan announced the launch of a new generation of LED lamp series, the entry-level 7 WATT LED bulb is 82 yuan RMB, compared to last year's entry price of about 20%, some products decline is as high as 33%. The main reason is that the cost of production of LED bulbs decreased significantly compared to the past. In terms of PHILPS energy saving lamp, the price difference has shrunk in 1.5 times up and down. This means that the LED bulb has become the mainstream of general lighting era has arrived". LED has high light efficiency, small heat, rapid start, long service life, stable safety, energy conservation and environmental protection, as the fourth generation lighting technology, it will honor the stage of history, instead of the previous three generations of lighting technology. Academician of the Chinese Academy of Sciences, the famous light scientist Liu Songhao in Guangzhou in August 8th to participate in the Pearl River Science auditorium, also said that LED lighting is an inevitable trend in place of the past lamps.

All new things, the first time when the call is higher. LED has entered the market for many years, its raw material costs continue to decline in design more and more mature, driving scheme, design of stabilized lamp. LED lighting alternative to traditional lighting is a historical necessity, but in accordance with the current trend of development, LED is still at least 2-3 years to gradually replace the traditional lighting, and the estimated price is now about 50% lower. "Pawnee lighting marketing director Zhu Cheng said.

Pacific General Manager of lighting LED lighting division Xiao Haibo said "with the technical progress and development of the industry, making the production cost of LED heat dissipation, drive and chip will become more transparent, the industry can grasp more accurately. "In this way, the production cost of LED will no longer be mysterious, can enter the stage of fair competition in public bidding, prompting prices to fall in a relatively stable state.

Prior to the use of imported chips currently has the potential to replace the chip

From mobile phones to monitors, lighting applications, LED's new applications are constantly being presented, and its market size will also become increasingly large, LED lighting has its unique advantages in the future will continue to have a lasting impact. With the expansion of production scale, the market share is increasing, the domestic production and channels must also be transferred.

Domestic drive IC as low as 5, a dime of $6, while the United States imports more than 1.5 yuan. Of course, the LED drive scheme and shell packaging are followed. "Shell materials, metal packaging and so on are all visible cost components. The most direct impact on the cost of production is the chip. Xiao Haibo said. A chip is a solid-state semiconductor device that converts electricity directly into light. Chip is not only the core of LED, but also the main force of price decline.

Chip drop directly affect the production of large