The strong competition of China and South Korea LED factory is a bigger challenge for Taiwanese businessmen

Yan Feng, chairman of Yanyuan Optoelectronics Co., Ltd. recently said that in 2014, LED lighting will be the main force for wafer growth, and the output value will directly dominate LED backlighting. However, the competition from Chinese and Korean manufacturers has not decreased, and the LED industry will continue to appear in the next two years. Horizontal or vertical consolidation, wafer prices will continue to fall, and chip manufacturers can only reduce costs.
Jane Feng Ren pointed out that attending the public event yesterday, the output value of LED lighting will double in 2014, and the LED for vehicles will become the main force to drive the demand for chips. The output value of NB and smart phone backlights is only flat; he estimated that Next year, the output value of LED backlights and LED lighting will be one to one. In 2015, it will grow to twice as much as the backlight.
Despite the amazing demand for LED lighting in 2014, the overall LED industry continues to be under price pressure. For example, in the past two years, the LED industry has actively replaced the 60-watt tungsten-on-wafer bulb. The price of LED has been priced from $40 to $20. After falling to 10 dollars, the price has not stopped at this stage. In addition to price pressure, the strong competition from the LED factories in China and South Korea is a bigger challenge for Taiwanese businessmen.
Jane is expected to, in the next two years, the LED industry is difficult to block the tide, in addition to the integration of the upper, middle and lower reaches, the integration of the industry may also occur, just like the past paper industry, from the initial 20 to 30 consolidation At present, under the pressure of price, Taiwanese companies can only continue to reduce costs.
Jane Feng Ren said that the wafer fab must be improved from product design and process, and high-efficiency LEDs can be made with the least amount of materials. Package-free wafers and high-voltage HVLEDs are expected to become two major trends, especially HVLEDs can replace the power supply with one IC. The driver not only prolongs the service life, but the chip can reduce the cost of the LED bulb by 30% to 20%, and the current technology can already produce 200 lumens per watt.
Looking forward to 2014, Jane Feng Ren said that the economy will show a volatility situation, as the ASP of the chip may still maintain this year's decline, about 10%.

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