Wang Ting, an analyst at Jibang Consulting, said that due to the widespread popularity of China-made MOCVD machines and the subsidies from local government subsidies in China, the new capacity of LED chips in China continued to be put on, making LED chip prices in vicious competition. Especially in the LED chip market for lighting, manufacturers are almost very difficult to make a profit.
In addition, from the perspective of the overall economic environment, the Sino-US trade war negotiations have not progressed smoothly. The US has imposed a 25% tariff on China, which is an established fact. LED bulbs are also included in the tariff list, which will lead to Chinese lighting products. The US export value decreased. Among them, the most serious impact is the lighting export enterprises that are highly dependent on the US market, and the foundries of some multinational lighting companies. Although some orders have begun to shift to Southeast Asian countries such as Vietnam and Thailand, the local industrial chain is not complete, and the overall production cost is higher than that of China. It is difficult to undertake capacity transfer from China in the short term. Therefore, the import cost of lamps and lighting products in the North American market is high, which affects market demand, and North America is the world's largest market for lighting products, which has impacted the growth momentum of the global lighting industry.
Packaging manufacturers strive to reduce costs, and high-voltage LED solutions are becoming more popular
Under the stagnation of the upstream market downturn and the lack of terminal demand, the average price of LED package products in the third quarter of 2019 continued to fall, with a drop of about 1%-6%, of which 0.2W and 0.5W 2835 LED products fell 6% and 5 respectively. %, the most significant decline.
Jibang Consulting also observed that as lighting brand manufacturers continue to streamline costs, packaging manufacturers have become more urgent to reduce the cost of materials. Therefore, high-voltage LED solutions that can reduce the cost of driving power supply have become more popular and the scope of application has expanded. At present, the high-voltage LED solution mainly uses 9V (100mA) ~ 18V (50mA), and reduces the cost of the capacitive component in the power supply by reducing the current. At the same time, the rise of this technical solution has also replaced the market position of the original low-power LEDs. It is expected that the number of LEDs used in lighting fixtures will be reduced.