Chinese LED CHIP manufacturers are investing more in product technology development and related activities in order to help speed up the development of the LED package industry. The average investment level of led industry will account for about 5% of operating income.
Most led chip suppliers are speeding up production to meet growing domestic demand for overseas market. It is expected that led chip manufacturers will invest in increasing production capacity of led chips. Guangdong Province may issue large orders for 1,500km of LED street lighting projects covering Dongguan, Foshan, Guangzhou and Shantou.
Some R&D plans are designed to deal with the expiration of several patented LED technologies. Exposing these solutions will allow manufacturers to develop new lighting concepts and increase competition in the market. Chinese companies applied for nearly 26,000 patents, most of which belong to LED packaging technology and applications.
For diode-based products and other light sources, raising energy-saving levels and reducing costs will be the focus of research and development. The emphasis will also be placed on improving durability and product life.
At present, the life of LED bulbs is usually around 10,000 hours, but some designs are above this average. At the same time, the lifetime of most CFLs is longer than 5,000 hours. More than 8,000 or even 10,000 hours of products are also available.
Prices of led products depend on power, size, materials of manufacture, and technology used. Most of the raw materials are purchased from domestic companies, but some are also purchased overseas as needed. For example, ABS is usually imported from South Korea. Several thermoplastics produced in Taiwan can also be used.
LED product manufacturers usually purchase diodes and led chips, the latter mainly from the United States or Taiwan. Other led lighting solutions are usually purchased from well-known companies such as Cree, Philips, Osram and Nichia.
The cost of most raw materials is expected to remain stable in the coming months. Since the major packaging technology patents will expire within the year, it is expected that the LED chip prices will fall by 5-10%. The expiration of patents may lower the licensing fees and keep prices stable for the next six months.
LED-based products are expected to increase penetration in the residential and non-domestic sectors. As technology advances reduce costs and prices, the market will speed up the acceptance of these products.
LED landscape lights are the main export products, LED products are being used in many major indoor and outdoor lighting applications, replacing fluorescent and incandescent lamps. In terms of garden and landscape light sources, LED products account for a significant proportion of production and overseas exports.
The lighting and electrical export situation in shows that the market is changing to green technology. Shipments increased by 5% year-on-year to more than 3 billion, a significant improvement from the previous nine months.
For example, CFL shipments fell by only 6% to 1.7 billion. CFLs are 30-40% cheaper than LED bulbs and are more attractive in terms of price. Most suppliers expect CFL shipments to increase by 10% in the second half of the year.
Suppliers are expected to increase sales of LED lighting products by at least 10%. Led chip manufacturers may continue to consolidate their markets in Europe, North America, and Asia Pacific. Currently, they are the major export markets.
However, there will be more led chip manufacturers to develop potential markets, such as Africa, where these markets have high demand for low-end products and have fewer trade barriers.Foreign capital enters Chinese LED manufacturing enterprises.
China is consolidating its position as a major global LED producer. In recent months, some leading international companies have invested in the construction of factories in the Pearl River, the Yangtze River and the Lancang Delta, the Bohai Economic Zone and even Western China.
In order to encourage international companies to build factories in the mainland, the local government introduced a policy of subsidizing construction costs. For example, a financial support fund of 1.46 to 2.93 billion US dollars was established in Nanhai District, Foshan, Guangdong Province. The project was established in October 2009 to support the semiconductor lighting industry in the region.
One of the results of this move was that the United States SemiLEDs invested $350 million to establish a new plant in the South China Sea area. will use SemiLEDs patented metal-based vertical structure of LED production wafers and high-power chips. The monthly production capacity of 1x1mm LED chips is 20KK. It is expected that after the completion of the third phase, the production capacity will exceed 380 KK/month.
Yangzhou, Jiangsu has similar policies. The municipal government took out $3.51-3.66 billion to subsidize MOCVD equipment purchases. Through this policy, Yangzhou will assume 1.5 million U.S. dollars for each equipment purchase. Depending on the specific specifications of the equipment, the price of MOCVD equipment is around US$4.4 million.
