Upstream LED CHIP companies are also facing the risk of price down, chip companies only continue to improve product performance indicators, increase lm / W value, so that you can meet the same brightness demand in the case of lower costs and improve product competitiveness.
With the expansion of sapphire production capacity and price reduction, the price of white LED light bulbs has been declining last year. The price of LED bulbs in 2022 will be 10% to 20% lower than in 2021, which will put tremendous pressure on corporate profits. LED chip companies can resist risks and enhance their competitiveness only through technological innovations and improved product cost-effectiveness.
Chip drop will reach 15% to 25% in 2022
There is no doubt that the decline in the price of LED bulbs is beneficial to the development of the industry, which will accelerate the popularity of LED lighting applications. However, the decline in prices will bring about many aspects of the chain reaction, such as corporate cost pressures will increase, the profit margin will become smaller and smaller. It is not just the upstream material companies that will have the pressure of cost and profit. The entire industry chain, including chip companies, packaging companies, and downstream lighting manufacturers will be affected to varying degrees.
The price drop is a reality that must be faced in the development of any industry. This is conducive to the development of the industry. LED is also unfavorable. For led manufacturing companies, it is necessary to continuously develop new products, reduce manufacturing costs, and increase product qualification rates in order to cope with the pressure of falling prices.
Recently, the price drop of LED bulbs has indeed been relatively large. 5W (about 450lm) and 8W (about 800lm) LED bulbs have dropped by more than 60% from the previous year. The prices of all the links have declined, but for lighting. The price of lumens, the current increase in led chip performance indicators, LED bulbs also played an important role in price reductions, last year for LED bulbs 10 × 23 chip about 7lm, can now go to 8 ~ 8.5lm, then the same production of a The 5W LED bulb light originally required 65 to 70 chips, and now 50 to 55 chips can achieve the original brightness; in addition, the 10x16 chip can reach 7lm, then, if 10x16 is used The chip can replace the original 10 × 23 chip can achieve the same brightness, the price of bulbs naturally dropped.
The decline in the price of LED chips is an inevitable trend. In 2021, the price reduction rate is more than 20%. It is expected that the price reduction will be 5% to 10% in 2023. The decline in prices is a general trend. As mentioned above, improving product performance and reducing production costs are the only way for upstream companies to cope with falling prices.
The technological gap between domestic and foreign countries is gradually narrowing down. Many led companies will resist industrial risks through technological innovation, is also constantly innovating and pursuing technological progress. The “anti-polar red LED” has won the award for innovative technology. Currently in the led chip field, Japan, South Korea, Europe and the United States and other companies have strong strength.
The reverse polarity red LED is a new product developed by us for led lighting and LED Display. At present, our technical level is close to the international advanced level, which can completely replace imported products and also break the monopoly of foreign products.
Foreign LED industry is earlier than domestic development, and the overall technology level is better than domestic enterprises. However, as international technology exchanges and cooperation have become closer and more talented people have flowed more frequently, the gap between the current domestic technological level and the international gap is gradually narrowing.
Blu-ray, green lights are also the focus of R&D for many companies. Our company is the earliest company to do AiGaInP material system ultra-high brightness red LED products, some domestic companies produce red and yellow light technology also has the shadow of our products, so we have a unique understanding and advantages of the material system products. . We are also the earliest company in China to implement anti-polarity red LEDs. The technical level of this product has been at the forefront of domestic counterparts and it can now completely replace imported products.
At the same time, we are also focusing on the development of blue-green LEDs and have applied for more than 90 patents. This is our unique advantage.
The reverse polarity red LED innovation consists in inverting the chip structure using a chip processing technology, so as to fabricate a structure that is favorable for light emission and brightness enhancement. This LED chip integrates the LED mirror process, roughening process and current spreading process, which greatly improves the led chip's external quantum efficiency. In particular, a unique current expansion technology is used to increase the led chip's external quantum efficiency by 10%. The PN junction of the chip is down, which is beneficial to heat dissipation and improves the service life of the chip.
This product uses a Si substrate and removes the GaAs substrate components from the conventional red light product, reducing the pollution of the waste chip.
