Eighty percent LED power supply companies do not increase profits

According to market research organizations, the LED driver IC market's revenue in 2015 will increase from nearly 2 billion US dollars in 2010 to nearly 3.5 billion US dollars, during which the average compound annual growth rate is 12. LED lighting IC required for LED lighting. It will be the main growth force of the market. However, while the LED driver market is expanding, it may be accompanied by a decline in product prices. In addition, AC-LED products will reduce the number of required driver ICs or even drive ICs, but will not generate revenue for the market during the forecast period. Significant impact, and even help accelerate the market penetration of LED lighting products, LED drive power will have a broad application prospects. At the same time, the domestic homogenization competition also causes the company to increase revenues without increasing profits. Will the implementation of the LED driver power supply officially incorporated into the 3C compulsory certification in September will standardize the current disordered market to reduce the homogenization of the disease? In such a favorable but competitive environment, how should LED power companies break through and develop? Recently, the reporter of the Aladdin News Center interviewed Liao Yuzhu, the general manager of Dongguan Lingguan Semiconductor Co., Ltd., which is steadily moving forward in the LED driver power supply field, to understand the current real market conditions. Innovative thinking and strict standards pay equal attention to the current domestic market homogenization competition, the similar products abound, the entire industry is in urgent need of innovation, and the leading semiconductors can launch different types of new power supply every month, Liao Yuzhu said, First of all, from an individual's point of view, I despise homogenization competition. This kind of plagiarism is a disrespect for the results of other people's labor. From the industry, this phenomenon is very common in China, product design is too simple, and there is no inherent innovation and research. The low technical threshold has led to confusion in the Chinese LED market. From the perspective of enterprises, the company is mainly engaged in technological innovation. From 0-300w, all products are independent innovation and research and development, which is different from similar products in the market. We have this concept in the stage of design and development. Even products of the same specifications must have their own characteristics. After marketing according to this feature, we can get good market feedback. Accordingly, this has become our constant The source of innovation. In the context of such a high-speed LED technology and market, there are many products in the crown that are sold in 2009 and are still hot products, which is the darling of the market! The reason is that we have carried out innovative and differentiated evaluation improvements at the beginning of the R&D case, and have always followed the principle that products pass the safety regulations and EMC is standard. It is the current crown that has many evergreen products! Of course, innovation will inevitably require certain investment in technology research and development, especially equipment investment. The crown is equipped with some new types of equipment, such as infrared imager, lightning surge tester, EMI tester with shielded room, electrostatic generator, etc. This is what the testing and certification organization has, but what the general company does not have. Although there are many investments in this area, it is equivalent to pre-testing safety and EMC in the company in advance, which can greatly shorten the time to market after product certification. In addition to product innovation, quality is also a key issue. After all, the quality of the LED driver directly affects the life of the lamp. The leader has considered all the products from the design stage. For example, the built-in series of products require the temperature of the working environment to reach 80 degrees, and the temperature of all key components must meet its rated limit and leave a certain margin. From the perspective of production control, the raw material supply of the products, as small as the resistors and capacitors, are made of Taiwanese materials, and the internal quality monitoring is very strict. The products will be distributed to the end customers after at least six processes. On September 1, "CNCA-C10-01: 2014 compulsory product certification implementation rules lighting appliances" implementation, LED drive power supply officially included in the scope of 3C compulsory certification, which further regulates the current disordered LED market, or reduce domestic homogenization The phenomenon of competition, but it may also cause large-scale closures of enterprises. In this regard, Liao Yuzhu cited a popular example. If you have always followed the traffic rules to drive, there will be no sense of restraint over time, but for those who often violate the rules, once strict, he will be very uncomfortable. The same is true for LED power companies. If companies have been producing products that are not rigorous and non-standard, once they have a national standard, they will be helpless. Certification is a high threshold for some low-tech companies, and it takes a long time and costs. Therefore, some small workshops in China have saved this step. The crown has always been produced in accordance with strict foreign standards, and domestic standards have no obstacles for us. Because China's 3C standard is also extended from foreign IEC or TUV certification standards, the difference is not big. Focusing on the stable market share of the power supply sector and the expansion of the production industry is the main theme of the development of the LED industry this year. Many power companies have extended their downstream market through the M&A model. At the same time, the huge market prospects revealed by smart lighting have also made some Power companies are coveted, and many companies are advancing toward the upstream driver IC field in order to seize the share of smart lighting. Liao Yuzhu said with a smile, the leader has not yet done this step, because now the power supply is still quite moist. In summary, there are two main reasons for the extension of the cross-industry chain: First, due to the large market layout, some powerful enterprises hope to involve the middle and lower reaches of the market and lay out the entire industrial chain; second, there is no such aspect. It is also a frequent phenomenon to achieve results and try to move to other areas for new development. Frankly speaking, the leader will always focus on the research and development of power supply, because we do not have the ability to control the entire industry chain for the time being. This is not the case, it is not without funds, but the risk is too great, we need to have 100% confidence. Go get involved. In my opinion, it is still very sure to insist on doing a good job of doing your own business and doing what you know! At the same time, it can also avoid repeated work. Simply speaking, it is something that people have, and once they do it, it will lead to overcapacity in the entire industry. Liao Yuzhu explained. In the aspect of intelligence, the leader has been making technical preparations, because intelligent lighting is a major trend in the future, especially now that mobile terminals are deeply integrated into life, but for the current operating income, ordinary lighting plus machinery Most of the control of dimming or manual dimming. Because the current stage of LED lighting is still in the primary replacement stage. At the same time, because the entire Internet of Things is not yet mature, it is difficult for the small part of LED lighting to bring the Internet of Things together, and it will take some time. Moreover, each company is determined to develop according to its own needs, and there is no unified plan. When it really breaks out, it will naturally return to modularity and standardization. As a power supply manufacturer, you need to reserve the technology in advance, and wait until the real outbreak is not caught off guard. After a round of development in the LED industry, the main battlefield eventually returned to the domestic market, and many internationally renowned companies have laid out the mainland market in an attempt to capture the future LED market share. For example, NXP Semiconductors, a global brand in the field of driver ICs, also launched an entry-level LED driver for low-end domestic customers this fall. As a domestic company, how should we deal with these powerful aggressors? Liao Yuzhu said that for domestic and foreign enterprises, LED is a very new industry. Everyone is in a fair start stage. The difference is that foreign companies may have strong financial strength, but domestic enterprises have local advantages, for the domestic market, National conditions and resources are more familiar. Although some international companies are offering low-cost product solutions to meet the needs of the domestic market, this low price may be the lowest cost for them, but for domestic IC companies, there is no minimum, only lower, which is rooted in The problem of operating costs. International big companies have their own high-end market, and domestic companies also have their own markets. Their cross-cutting layout will not have too much impact on companies that already have market share, because the already well-positioned market share will still be strong. In your own hands. Differentiated routes against increasing revenues and not increasing profits Recently, some insiders said that although LED driving power supply has a large growth space, the gross profit level continues to decline. The overall scale of the LED industry is still at a relatively high growth stage, but due to fierce competition, companies in the industry are generally in a situation of increasing revenues without increasing profits. This is a phenomenon in which the homogeneity of domestic products is serious and the 70-80 enterprises in China are widespread. The LED industry is different from traditional lighting. It is mainly based on electronics and should be used as an electronics industry. Some enterprises in Zhongshan began to do LED lighting. The familiarity with this industry is not enough. There is no good product control ability. If the key to product quality is a problem, it will cause the collapse of the entire capital chain, leading to the closure of the enterprise. Fortunately, the crown is not in the 80 companies, because we produce differentiated products, we compete for product features and services. The homogenization competition is in the market, which is not conducive to the development of the entire LED industry. The result of low-price competition will only lead to worse and worse product materials, which will ultimately affect the quality of the end products. To the good market prospects, the industry has developed from multiple angles. In Liao Yuzhu's view, the development trend of LED driver power can be viewed from two aspects: from bulbs and spotlights, non-isolated ICs with constant current control. The program is the mainstream, and it is also the part that has done the most and has the largest shipments; the ceiling lamps, downlights, panel lights, etc. of commercial lighting are mainly isolated power supplies because it involves the safety of a personal property. High-power products such as street lamps and mining lamps are also based on safe isolated external power supplies. As for the high-pressure and linear solutions that were previously sizzled, after a period of market validation, they have been eliminated because the market reflects and the quality of the products is very bad, and the current non-isolated constant current, price and performance. Have an advantage. In the future, Leading Semiconductor will continue to use dimming power as its main development direction. At the end of this year, 21 specifications will pass the US UL certification. These 21 specifications will become a new business growth point, providing UL/FCC/DLC/ENERGYSTAR-certified control for lighting customers in the US market. Silicon, 0-10V dimming series without stroboscopic power supply, wattage involves 5-60W. It greatly saves the R&D expenses and product launch time of the luminaire manufacturers, and provides a powerful weapon for customers to seize the opportunities in the North American market. The focus of our leading product layout in the future will be in the US market. Because the high-quality quality requirements in North America are also consistent with the positioning of the leading products; I believe that once the trade barrier of the high threshold of the United States is broken, the market leading to export will have a breakthrough development.

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