[Source: Gaogong LED's "LED Research Review" magazine April issue Reporter / Wang Cairong]

Enticed by huge market potential, and benefited from policy support, in recent years, many LED display companies have swayed and rushed into the LED lighting market. In fact, from the upstream epitaxial chip to the downstream terminal lighting products, the entire LED display industry chain has shown a trend of jumping to the LED lighting market.

As the leading LED display packaging device in China, Shenzhen Jingtai Optoelectronics Co., Ltd. (hereinafter referred to as “Jingtai Optoelectronics”) has also begun to plan the layout of LED white light packaging packaging market. Founded in 2008, Jingtai Optoelectronics invested more than 200 million yuan and currently has a monthly production capacity of over 1000 kk. It is a supplier and service provider specializing in LED display packaging, medium and high power white light and COB integrated packaging solutions.

“Last year, our revenue increased by more than 50% year-on-year, and the lighting-grade white LED increased by more than 200%.” Gong Wen, general manager of Jingtai Optoelectronics, told reporters that the company currently has a total of 120 packaging production lines, including lighting-grade white light packaging products. 50%. “We started to power the white light package from the second half of 2011 and now it has become the company's main business. This means that the company's product line transformation has been basically completed.”

For the downstream application areas of the industry, Gong Wen said that it is a general trend for display companies to expand into the LED lighting business, but the competition in the LED lighting market will be more intense, and the industry reshuffle will be more cruel.

In 2012, after some display companies turned to the lighting field, because the capital chain and technical support could not keep up, the lighting market not only did not stand firm, but dragged down the original business and was eventually forced to close down.

Recently, Dr. Zhang Xiaofei, CEO of Gaogong LED, and Gong Wen, General Manager of Jingtai Optoelectronics, have launched a heated discussion on hot topics such as LED packaging industry shuffling, future pattern changes and COB integrated packaging technology enhancement.

Zhang Xiaofei: Five years ago, there were fewer than one hundred domestic companies involved in the packaging field. So far, it has grown to more than 1,700. In 2012, large and small enterprises closed down a batch. What do you think of the development trend of the packaging industry?

Gong Wen : Everyone knows that the whole industry is experiencing the reshuffle stage. Although there are many domestic LED packaging companies, the scale is generally small, and the domestic market size does not exceed 40 billion yuan. So I think that shuffle is inevitable in the midstream packaging field. Now LED companies are mixed, and integration is actually a good thing for the whole industry. Eliminating the disadvantaged and non-core competitive enterprises can enhance the confidence of capital investment and promote the healthy development of the terminal LED market. The number of packaging companies will decrease drastically in the next few years, and several leading benchmark companies will emerge.

Zhang Xiaofei: At present, the number of packaging companies that have sold over 100 million yuan is no more than 40, and the top 20 packaging companies only have about 30% of the package output value. How do you see the changes in the domestic packaging pattern in the future?

Gong Wen: Actually, the domestic packaging industry is still very fragmented. It is still difficult to have a leading packaging factory in a short period of time. But the overall pattern has changed. In fact, some changes have taken place in the packaging industry this year. For example, peers such as Hongli, Ruifeng and Guoxing Optoelectronics have already expanded in large-scale production. The decisive factors for the competition of packaging enterprises in the future will be management capability, cost control capability, scale and Brand.

Just now you mentioned that there are 40 companies with a sales revenue of more than 100 million yuan in packaging enterprises. In fact, I think that there are probably 40 or so in the future.

Zhang Xiaofei: COB packaging is the future trend. What new breakthroughs has Jingtai Optoelectronics made in this regard? What is the light performance?

Gong Wen: At the beginning of 2012, Jingtai Optoelectronics took the lead in proposing the MLCOB concept and successfully developed a variety of light engines based on MLCOB technology. We have been promoting the third generation COB technology, which is the multi-prism light distribution technology. It uses a unique reflector design to increase the light efficiency by 30%-40%. We call it MLCOB. Now its light efficiency has reached 160lm/W, which is already the most efficient product in the industry COB package. MLCOB technology is the preferred direction for our research and development. It has a wide illumination angle, good uniformity of the glazing surface, uniform brightness and low thermal resistance. We plan to increase the MLCOB light efficiency to 200 lm/W in the second quarter of this year.

Zhang Xiaofei: MLCOB products should mainly target the mid-to-high-end market. How much space does it have to cut prices in the future?

Gong Wen: At present, the cost of MLCOB products is relatively high compared to MCOB and COB products, and the manufacturing process is also complicated. However, as the packaging process continues to improve and the yield increases, the structure will become simpler and simpler. The cost of the MLCOB product will gradually decrease to the cost of the current ordinary COB product, and there will be about 40% of the price reduction in the future.

Zhang Xiaofei: The LED display device of Jingtai Optoelectronics has a certain scale. How much is the LED lighting device business ready to do?

Gong Wen: In fact, LED lighting devices are already the company's largest business, accounting for about 50% of total revenue, and display packaging business accounts for about 40%. In the future, we strive to achieve a 70% revenue share of LED lighting devices.

The limitations of the LED display industry are too great. From the situation of the past two years, the growth rate of the whole market is relatively slow, and the space of LED lighting is broad. At least there are dozens of times of market capacity growth in the future, so the display screen The proportion of business will gradually decrease, and the control will be around 30%.

Zhang Xiaofei: At present, Jingtai Optoelectronics has a small-scale trial production of downstream lighting terminal products. What is the consideration of the terminal market?

Gong Wen: The purpose of doing a small part of the downstream application products is mainly to understand the LED lamps in the technology and understand the requirements of the end customers for the packaged devices, so as to better serve the lighting customers.

In fact, more precisely, we have to establish a lighting application laboratory. In the near future, we will provide customers with a complete LED light source solution, not just a device, so the strategy of Jingtai Optoelectronics is still wholeheartedly. Focus on packaged devices.

Zhang Xiaofei: Only by taking the packaging route, the market will definitely go narrower and narrower. I believe that large-scale packaging plants can make good products by doing LED application products. The main problem now may be in the channel laying.

Gong Wen: In fact, the biggest difficulty for packaging companies to expand downstream comes from the difference in sales models. The lighting terminal is a continuous production process. In order to produce a fixed quantity, the quantity is often difficult to do because it relies on the power of the channel. But for the packaging factory, this is definitely a new field and a huge challenge.

Zhang Xiaofei: Jingtai Optoelectronics has achieved a revenue of more than three billion yuan. How much research and development costs are invested each year? How to measure whether a company has potential competitiveness?

Gong Wen: We attach great importance to the research and development of new products and new technologies. The minimum investment in this area accounts for 5%-8% of the total turnover every year. On the one hand, it develops new packaging modes, improves product performance and reduces costs. On the other hand, it is to study the harmonious unity of photothermal power, which is the lighting solution.

I believe that the core competitiveness of enterprises is mainly reflected in the technical level and cost control. From the current point of view, domestic enterprises are obviously lagging behind in technology, but they have been making progress in reducing costs. European and American countries have implemented monopoly on technology, but they have been slow in cost control. In fact, in the final analysis, if enterprises want to acquire a bigger market, they must rely on two major aspects of technology and cost to break through.

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