The LED production capacity in Taiwan and China has been ranked among the best in the world, and the related companies in the two places are further reducing the cost of LED street lighting construction through vertical integration of supply chain or new-type contract energy management business model; As the price of LEDs continues to decline, the LED medical lighting market is also rapidly emerging under the active investment of Taiwanese and Japanese manufacturers.
As mainland China continues to increase the production capacity of light-emitting diodes (LEDs), resulting in continued decline in product prices, in order to maintain a certain margin, Taiwan's existing manufacturers have adopted LED upstream epitaxial wafer factory, midstream module factory and downstream packaging factory vertically integrated. Strategy preparation, and by optimizing price competitiveness, began to launch an offensive towards large-scale LED outdoor or medical lighting.
It is worth noting that China's 12th Five-Year Plan is highly concerned about energy-saving applications, driving local governments, energy management companies and LED operators to create a new business model for Energy Management Contract (EMC), which will enable the development of LED street lights. Take the step of the wind.
The rise of new business models, the popularity of LED street lights is expected
LED streetlights are attractive, but the huge initial deployment costs often cost a big ticket to the manufacturers who are eager to grab. In order to build a strong capital threshold, the industry is setting off a wave of vertical integration upstream and downstream to reduce production costs. Maintain gross profit. In addition, the mainland China has also recently launched a contract energy management business model. By cooperating with LED operators and energy management companies to spread cost pressure, it has also injected a new momentum into the development of LED street lamps.
The LED production capacity competitions in China, Japan, Korea and Taiwan continue to expand. In the future, whoever has more access to the global market will become the key to success.
The trend of LED lighting to replace traditional lighting has become increasingly clear. In terms of the global LED outdoor lighting market, it is expected to grow to 1 billion euros in 2016, so it is now a critical moment for LED manufacturers to seize the market. Taking streetlight applications as an example, the number of streetlights built in Taiwan is as high as nearly 1.6 million. However, due to unclear policies and high LED prices, the current penetration rate is only 2%, so the industry has been attacking the rest. In 98% of the market, the vertical integration of upstream and downstream is actively carried out, and the overall price of a single LED product is kept to a minimum, so as to approach the price band of traditional lighting, and further accelerate the time course of replacing the traditional street lamp with the LED street lamp.
LED packaging manufacturer Everlight is the manufacturer of the vertical integration of the largest active LED supply chain. In addition to launching its own LED brand “Everlight†to digest production capacity, it actively cuts into the upstream epitaxial supply chain and obtained Lei in August this year. The management rights of Jingchang Taigu. Wu Dongxuan revealed that Yiguang has mastered the upstream production capacity of the epitaxial segment and its own brand of LED lighting application. At this stage, it is more eager to expand its business map and aim at the mid-stream die production and module factory. He also expects that Everlight will continue to incorporate key capabilities in the LED supply chain through investment or mergers and acquisitions, and further enhance LED price competitiveness with consistent production processes and services.
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