The main exit of the domestic LED lighting enterprises in the next three years(two)

1. LED industry follow the laws of the market for the semiconductor industry.

As we all know, LED has the advantages of long life, intelligence and other traditional lighting alternatives because its high luminous efficiency(energy saving). Therefore, a considerable number of LED manufacturers are naturally emulate the operation of the operating model of the domestic LED lighting. However, this is fundamentally wrong with that. LED is a semiconductor technology. LED industry should follow the mode of operation of the semiconductor industry and market discipline.

domestic LED lighting

In the LED application products, both from the point of view the performance determinants or cost factors, internal tiny LED lights chips account for more than 60%  of the entire product. Upstream chip processing class IC technology by the semiconductor industry, with the characteristics of high automation, high consistency, high integration, high research and development costs, low processing cost, low processing costs. This feature is significantly different with traditional lighting.

LED industry has a significant middle part-packaging components, package links basically using standard semiconductor packaging processes, such as SMT, welding. Midstream package standardization which is essential for downstream application diversification.

In detail, unlike traditional lighting, domestic LED lighting belongs to the filed of semiconductors, technology-intensive, the design and processing of separable, the middle and upper reaches of the industrial chain standardization and other characteristics. So, in the semiconductor industry, the prevalence of large-scale production and the production process is relatively standardized chip and package-generation plant, design company can be out of phase with the dominant production foundries, higher costs of product design, technology updates soon, and the product the generation of processing costs are relatively low.

For the domestic LED lighting application manufacturers, the midstream LED package standardization of components makes key is how competitive differentiation, personalized to design, how to do, “I have no people, there I am.” So, according to the company’s own resources, how to find accurate market segments, and how to tap the potential market opportunities, how solid the existing market share and how creative open new markets for mission-critical market sector. This requires that the market must have extensive technical background, because the design of the applications involves a considerable number of technical areas, such as mechanical, thermal management, electronic control, semiconductor, optical performance, and even extends to advertising creative, light and shadow, Psychology and other fields.