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The price of LED chip is under pressure, Yiluang, Lunda and so on fade out of the low-order lighting one after another.

Sep 28, 2018

In the first half of this year, the price of some standard LED chips fell by 2-3%, the price of lighting products did not improve, and the Taiwan LED packaging plant Yinguang, Longda, Dongbei and so on faded out of low-grade lighting production. The proportion of light lighting fell to about 16-17 percent in the future, may fall to 10 percent in the future, Londa lighting products revenue share will fall from 40 percent to 30 percent. Sanan, Huacan, Aoyang Shunchang and other land-funded LED plants have implemented the localization of their machines, and the price pressure of new production capacity has not reduced the price pressure of LED bulbs. For LED packaging plants, low-grade lighting has revenue and the profits are quite meagre. Supply chain must also bear the cost, so one after another withdraw from the low-order LED lighting field, with profit, high added value lighting as the focus of production.

Billion light reduces the proportion of less profitable backlighting, lighting and other consumer sectors, increasing niche applications, such as red light, car, lighting revenue share dropped to 16-17, the future growth of automotive products, revenue may continue to fall to 10%.

In the past, LED accounted for as much as 40% of the cost of lighting products. With the price of lighting products falling, the proportion of iron parts increased. Londa believes that semiconductor compound factories should not put resources on lighting iron parts. Therefore, in recent years fade out of low-profit lighting products, lighting products will be reduced from 40% to 30%.

Dongbei cut down the order for low-ranking lighting without making any money, resulting in a decrease in revenue to 5.869 billion yuan (NT $, the same below) last year, and the annual reduction rate was 28%. In the first eight months of this year, the revenue was 3.554 billion yuan, and the annual reduction rate was 7.01%. It turned to the development of high-value additional value lamps, health, and intelligent applications. Obtain Toshiba lighting brand authorization to expand European market share.

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