OLED technology will become the next breakthrough for LED lighting industry?

Since 2011, export orders from abroad dropped sharply together with a non-fully developed domestic market. Under such circumstance, many downstream LED street light companies intend to find some breakthrough in OLED technology.

 

OLED is an abbreviation of Organic Light-Emitting Diode, also called Organic Electro-luminesence Display, OELD. It has properties of lightweight and energy saving. This technology was firstly applied on displays. In 2003, OLED technology started to use on MP3 and received positive responds. Compare with LED, OLED was a so called new born baby, having strong vitality and cannot-be-underestimated potential. Facing intense competitive, LED producers started to move their attention in this field.

 OLED technology will become the next breakthrough for LED lighting industry?

In accordance with a recent report issued by SME Research Center of Peking University, the total output value of domestic LED industry is around 150 billion yuan in June, 2012. The estimated annual compound growth rate is 25% in next 3 years. The downstream LED applications, like LED displays, LED backing applications, indoor LED lights, will occupy more than 75% market. Indoor LED lights will become the biggest LED lighting market in near future. The estimated annual output value will be 25 billion yuan in 2012 and 100 billion yuan in 2015.

 

Since lacking of the core technique, most LED chips need to be brought from foreign companies. In most indoor lighting products, the chip cost take over about 60% of total cost. Thus, costs of domestic LED products will maintain in a higher level in short period of time. Downstream market is the fiercest in all LED market. The number of new built LED companies sharply growth recently, more and more manufacturer joint into this battle. Many of them were forced to drop prices, and the profit space was shrinking. Professor Peng Jin, secretary-general of Shenzhen semiconductor industry association indicated that those capable downstream enterprises should not only concentrate on overseas market. Presently, they need pay more attention on upstream, establishing their own LED chip Research and Development Department to create their own LED chip technique. Otherwise, “we are working for our competitors.”

 

The development of OLED technology also provided a new profit growth point for domestic LED manufacturers. Mr. Xiaofei Gao, President of LED Industry Research Institute felt confident about OLED’s future development. “Compare with LED, OLED can stimulate more creative to meet more individual needs”.

 

How to make high quality LED chips (3)

In some cases, packaging process impact more influence on LED lights chips than themselves. Before designing lamps, engineers should request LED standards or specifications from their suppliers, and conduct light intensity test to ensure that package did not distort the original parameters too much. Good LED chip suppliers can guarantee that the reliability of their LED package will maintain at least three years. Some of them even provide customized high quality LED chips according to the specific requirements.

In some cases, packaging process impact more influence on LED chips than themselves.

Testing before production is rather important. There are an example in transportation area can help explaining how tests can prevent LEDs failure in high-degree visibility applications. In 1990s, LED products were used as stoplights on cars and trucks. The performance differences due to the inconsistence of LED chips caused serious damages for these lights and even traffic accidents. Not until recently, when LED lighting technique started to use as traffic lights, this issue received enough attention. Pressure test and accelerated life cycle test are two new modules that typically designed to solve this problem. Those high quality LED chips which has passed these two tests can really safe to used in more harsh conditions.

 

Not every application required high quality LED chips with advanced and precise packaging. If packaging cannot meet the stringent demands, serious accidents are still avoidable. If the cost of maintenance is reasonable and a few defects are also acceptable, producers will intend to use worse LED packaging.

 

The most essential point is whether these high quality LED chips can be affordable. If producers never consider of the cost, they can obtain a perfect LED chip with highest quality and best packaging but also a ridiculously high cost. Therefore, within the constraint of cost, packaging level, assembling design and testing should be taken into account. There must be some trade-off. If price were not a consideration, LED lighting manufacturers need to spend a lot time on choosing the best LED chips and co-operate with those LED street light suppliers whose can provide a complete set of reliability and accelerated life cycle tests. In most cases, this kind of co-operation will be long termed. The large potential profit let many medium and small businesses scramble for.

Which part of the LED lighting industry making money(2)

Such as a LED lights business in October last year into the field of LED lighting, participating in the Guangzhou International Lighting Fair in June this year, after the show received some foreign customer inquiry and send samples, due to the lack of factory preparation, hurriedly prepared samples, aging test is not in place, the results of product to the customer when the normal lights have been customer complaints. So I think you want to gain a firm foothold in foreign markets, the quality is the first, and it is out of question to talk the business without good quality.

Which part of the LED lighting industry making money(2)

A lot of investment LED lighting industry, the proposal for these new entrepreneurs?

Mainly depends on the hands of the funds. Less funds can only be cut from less input LED street light applications, but the positioning of the product is very important. But the positioning of the product is very important. Once the selected direction to a certain extent determines the success and failure of the enterprises. If funding is sufficient, you can enter the middle of the package. Package surface is not difficult to procurement chip package. This step is good or bad impact on the chip of the angle of the light and light ratio. So it is a great technical content step.

The investment package must be aware before the package, so it will be even more smoothly. The newly established LED lamp factory will always be the development of new products and chaos. The sample produced is more rough. And the production process is a bit confusing. In fact , the root of the problem is the lack of engineers with some experience. Production line workers are the low level of understanding of LED lighting industry.

The key to solve these problems is to make full preparations before the plant is built. planning the development direction of a good product, so that confusion does not appear in the mass production process. Another point is to recruit engineers with some experience is very important. After all, a good engineer can save enterprises a lot of detours cost and time, and also can promote the technology level of the other engineers.