[Year of the Year] How to crack the price of the package "shackles"

[Text|High-tech LED reporter fire] At present, China has gradually become the manufacturing center of LED packaging devices in the world, and the capacity of domestic LED packaging companies has expanded rapidly. In 2014, the expansion of production capacity in the packaging industry was actually higher than in 2012-2013. In the next 2-3 years, the proportion of LED packaging in China's domestic enterprises is expected to exceed 50%.

Obviously, the technical strength and market position of China's packaging industry is becoming more and more prominent. In this regard, Hongli Optoelectronics General Manager Lei Lining pointed out at the 2014 High-tech LED Annual Conference--"On the Road to the Industry Strategy" conference, "The packaging is actually a high integration of materials, upstream products, and downstream technologies. It is a bridge between the upper and the lower. The packaging technology is the direction indicator for guiding the development of the lamp structure and chip technology, and the importance can be seen."

However, with the rapid expansion of China's packaging industry, the industry's concentration is getting higher and higher, which means that the market competition is becoming more and more fierce. When “things are rare” and replaced by “bad streets”, the price becomes A good edge on the packaging company's head.

From the perspective of the entire packaging industry, small businesses are becoming more and more difficult to do, and large enterprises will continue to promote restructuring. After the industry has completed the reshuffle, it will eventually leave large-scale enterprises. The situation of “the big ones will be strong and the strong ones will be strong” will become more obvious.

According to GLII data, in the first three quarters of 2014, the output value of the midstream packaging industry has reached 41.98 billion yuan, a year-on-year increase of 20.4%, but the price of midstream packaged devices has dropped by more than 10%, and the gross profit margin has declined year by year.

It can be seen that the problem of increasing profits without increasing profits continues to plague the LED packaging industry, and the efficiency of input and output of enterprises is decreasing. This phenomenon has continued to deteriorate.

The industry believes that the formation of price wars has two main reasons: "passive" and "active."

The "passive" factor is that with the gradual increase in the home LED lighting market, LED lighting companies have lowered the life expectancy of 3-5 million hours of LED lamps to 6000 hours in order to compete with traditional lighting companies. The factory has cut prices sharply. There are also some lighting companies that hope that the current lighting will have a big momentum and quickly occupy the market at a low price, so it will also greatly reduce the purchase price. But in fact, if you want to ensure quality, such a price cut is not enough for packaging companies.

The "active" factor is that from the perspective of the whole market, many manufacturers of packaged devices are facing the homogenization of products. Large-scale packaging enterprises can still rely on scale to win profits. Some small and medium-sized enterprises can only take measures to cut corners and reduce materials in order to survive. The industry's low gross profit disordered competition has intensified.

Dr. Zhang Xiaofei, CEO of Gaogong LED, said that the current crazy price war in the packaging industry has seriously hindered the healthy development of the industry and is not sustainable. The reshuffle integration of the packaging industry is imperative. “Only those leading companies in the segment with scale advantages or featured products can survive this wave of integration.”

According to GLII statistics, in 2014, hundreds of packaging companies were eliminated, and it is predicted that the number of LED packaging enterprises will exceed 300 in 2015. Then, in the face of increasingly fierce competition in the market, where will domestic packaging companies go?

Zhou Lujun, Marketing Director of Philips Lumileds Asia, pointed out at the 2014 High-Tech LED Annual Conference--"On the Road to Big Strategy" conference, "The ability of packaging to reduce costs is critical to the overall cost reduction. The evolution of packaging is The direction of micro-forming is moving. Only in this way can the material be saved and the material cost can be effectively reduced."

As far as the product itself is concerned, the packaging of the LED must be smaller and smaller, and the light effect is getting higher and higher. The industry has unanimously determined that this law will not change. Therefore, some people think that COB is not only the absolute mainstream of the current market, but will continue to be longer in the next 2-3 years.

In this regard, Jingke Electronics CEO Xiao Guowei believes that "the future development of LED technology will focus on high-power and high-light density output devices, while the development direction will gradually transition to Flip-chip on PCB (FCOB) and standardized optical components. ”

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