"Today, the LED industry has reached a period of relatively stable growth. I have defined the current normality of the overall industry as a stable new normal. In the future, as large enterprises continue to expand production, industry concentration will become higher and higher, but in the new There will be some changes in the cycle.†Dr. Zhang Xiaofei, Chairman of Gaogong LED, presented at the Spring Festival in 2018.
On March 10th, the 2018 High-tech LED Spring Festival held by LED Supply Chain and Capital Integration Leader Gaogong LED will be held in Shenzhen Qingqing World. More than 40 LED industry chain leaders in the Pearl River Delta region will gather together to discuss Exchange the new starting point, new discoveries and new strategies for the development of the LED industry in the new year.
First of all, Dr. Zhang Xiaofei, Chairman of Gaogong LED, delivered a keynote speech on “Stabilizing the New Normal and Breaking Through the Enterpriseâ€. Starting from the middle and lower reaches of the LED industry chain, he focused on the current status, future and chip breakout strategies of the chip, package, and downstream application markets.
Dr. Zhang Xiaofei, Chairman of Gaogong LED
Regarding upstream chips, GGII data shows that in 2017, the output value of LED chips in mainland China reached 18.8 billion yuan, accounting for nearly 40% of the global LED chip production value. GGII expects that the growth rate of LED chip output in mainland China will slow down to 14.4% in 2018, reaching 21.5 billion yuan. With the continuous release of LED chip capacity, GGII expects LED chip prices to drop by 10%-20%.
In fact, since October 2017, the price of chip 2835 has been lowered by 15%-20%, and the trend of price reduction has already appeared. Dr. Zhang Xiaofei believes that "the price of different enterprise chips is not the same. I believe that there will be some changes in the planning strategy of each LED chip company this year."
How do LED chip companies break out? Dr. Zhang Xiaofei gave the following three suggestions: 1. Actively expand production, form scale advantage, and enhance its market share; 2. Expand overseas OEM business on the one hand, and OEM for international LED chip giants to improve their capacity utilization. Rate and chip manufacturing technology. On the other hand, through acquisition or technology research and development, establish its own patent pool to expand the overseas packaging market and high-end applications (such as cars, flash) market. 3. Utilize the national semiconductor industry policy to expand the semiconductor business.
Regarding the midstream packaging industry, Dr. Zhang Xiaofei said: "According to my observation, the packaging strength of the top ten packaging companies is still not enough. The 'sweetness' of the expansion has not been fully reflected. In the next three years, large enterprises need to expand production. If the expansion is not continued, the gross profit margin will continue to decline."
For large enterprises, Dr. Zhang Xiaofei suggested that the following three ways should be broken out in 2018: 1. Enhance its own research and development strength, improve product quality, and actively expand the high-end market; 2. Develop overseas packaging OEM and overseas lighting companies to digest themselves. Capacity, to avoid fierce domestic market competition; 3, through the acquisition to the downstream lighting direction, to find the seaport for its packaging capacity, improve capacity utilization.
For small and medium-sized enterprises, Dr. Zhang Xiaofei suggested that the following two ways should be used to break through in 2018: 1. Avoid price wars with big companies, deepen market segmentation, and achieve the ultimate; 2. Give the advantage of small and good turnaround. Downstream application companies provide customization and broaden sales.
Regarding the downstream application field, Dr. Zhang Xiaofei said that in terms of the overall output value of LED downstream applications, the growth rate has declined, but the growth rate itself is not bad. At the same time, benefiting from the outbreak of small-pitch LED display, the LED display market has also shaken off the trend of low growth in the past; in addition, LED niche markets such as LED lights, LED intelligent lighting, LED plant lighting and other emerging markets also show 20% The above growth.
For SMEs, Dr. Zhang Xiaofei suggested that the following two ways should be broken out in 2018: 1. Deeply plow the market, embrace the market with high added value and small beauty; 2. Closely integrate with customers and understand the pain points of end users. Customized solutions tailored to your needs.
Subsequently, representatives of mid-stream enterprises in the industry chain took the stage to share their respective layouts and future plans. Zhu Yulin, director of Jingyuan Optoelectronics Product Management, said that Jingyuan Optoelectronics is not good at products with fierce price competition, and pays more attention to R&D innovation and technological innovation. We will not fight against other manufacturers in terms of price. We will stand on the perspective of consumers and pursue "beauty" products.
Zhu Yuanlin, Director of Optoelectronics Product Management
Quan Jinsong, vice chairman of Zhaochi Co., Ltd., introduced the successful experience of Zhaochi in integration and expansion: on the one hand, resources complement each other; on the other hand, management decisions, management needs to do their homework, not just by the superiority of the company. decision making.
Quan Jinsong, Vice Chairman of Zhaochi
Regarding the upstream and downstream expansion, Quan Jinsong said that one of the reasons why Zhaochi decided to go upstream: We are a company with relatively large net assets. Based on our asset advantages and equipment advantages, we now hope to do more in the photovoltaic industry. Some investments are more integrated with the government.
Song Changning, the general manager of Xinyichang, shared the relevant situation of Xinyichang. Song Changning introduced that in 2017, the overall price of our equipment was lowered by about 5%, but the overall profit increased by more than 30 million. At present, Xinyichang's investment in research and development costs accounts for 6% of total sales. We plan to increase R&D funds to about 10% of total sales in the next few years, so that our equipment has more say.
Song Changning, general manager of Xinyichang
Small general manager Zhang Luhua shared his understanding of lighting packaging. He said that for lighting packages, the overall concentration is a little worse than the chip, higher than the downstream application. As we all know, the price of the general lighting part has been "bad", and the market competition of lamps, bulbs and panel lights is very fierce.
General Manager Zhang Shuai
Therefore, he believes that the future development trend of lighting packaging is the centralized distribution under the guidance of government policies. At present, China has formed two major LED industrial zones, Nanchang Optics Valley and Yiwu. In addition, it is scale. For the packaging enterprise, the key is its scale and efficiency. The technology PK between enterprises has been diluted, and the scale and efficiency gap will gradually reflect in the future. Together with the shortening of the entire industry chain, efficiency will also be Will have a certain effect.
According to Gong Wen, chairman of Jingtai Co., Ltd., after ten years of development, Jingtai has continuously cut off lighting packaging and consumer products, focusing on display packaging. For the two emerging technologies of Micro LED and Mini LED, Gong Wen said that the future is still very long, mainly two technologies to be overcome, one is huge transfer technology, and the other is chip miniaturization technology.
Gong Wen, Chairman of Jingtai Co., Ltd.
San Jianpeng, deputy general manager of Sanxiong Aurora, said that this year we encountered two major problems in manufacturing: the first one is cost, because the cost of plastic materials and packaging materials rises, causing the cost of lighting fixtures to rise, resulting in a comparison of profit pressures. The second is the manpower problem. Since the Spring Festival, manpower recruitment has been difficult, resulting in increased costs and difficulty in recruiting workers.
Deputy General Manager of Sanxiong Aurora District Jianpeng
Therefore, our investment in automation will increase this year. In the past few years, many companies have invested heavily in automation equipment, but because the products are not very mature, the market can't keep up, so many equipments are idle, and it has not played a significant effect. Therefore, we will carefully increase the automation production investment according to our own needs.
Qian Xuexing, general manager of Morning Technology, introduced that we are now paying attention to the strip light source. For us material companies, the biggest advantage is to improve the material and packaging process to make the finished product of the light source. Here are some Span is helpful for some application scenarios. We believe that although the market competition is very fierce in T5/T8, we have saved a lot of links and saved costs.
Qian Xuexing, General Manager of Morning Technology
Qian Xuexing said that the morning technology only needs to provide the light source, and the lamp manufacturer can assemble the production process to form a lamp. Including future panel lights and outdoor backlight products are all advantageous.
Chen Hao, director of Maoshuo's electronic brand operation, said that the development of drive power has become a fairly mature industry. Now everyone is pursuing only one reliability requirement. How does Maoshuo continue to go down?
Chen Hao, Director of Moso Electronics Brand Operations
Chen Hao introduced that the first step is to differentiate the route. The profit of this route is relatively higher. Second, we still hope to add some added value. At present, the traditional driving power supply has no way to go. Our focus is on highlighting the power supply. The added value, in other words, is to take the intelligent route.
In the following session, how do the representatives of nearly 40 business leaders from the industry chain focus on the integration and expansion of upstream chip companies, and how to affect chip prices? Packaging product differentiation: cost or differentiation? Does technology determine the market, or does the market decide technology? What do lighting companies rely on to win? channel? price? Product X sex? How far is the actual demand for production automation and the ideal realization? Newly discovered market space and ownership: plant lighting? Automotive lighting? UV? Small pitch products? Competition situation at home and abroad: Is the world peaceful or earthquake-prone? Is the warlord's separatist still the world? ... and other topics to explore.
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