This week, the price hike from LED upstream raw materials has not stopped. The wave of price increases in the midstream package is spreading to the downstream application market.
The small-pitch LED market in the center of the storm wave has begun to ease the tension between supply and demand.
Liard disclosed this week that although the order of the upstream supplier was delayed due to insufficient supply of upstream suppliers in the third quarter, after several months of continuous expansion, it has now eased. It is expected that the order will be signed from November to December. Will improve.
LED driver IC manufacturers are expected to accumulate, the shipment of small-pitch LED display driver IC is still expected to grow rapidly, and the overall market is expected to increase by 50%.
Looking forward to 2017, many companies are not optimistic. Among them, the oversupply of the backlight and lighting market is still the most concerned topic.
In 2016, the LED industry gradually got rid of the trough and rebounded. Looking forward to 2017, Nichia Chemical Co., Ltd. believes that the LED industry market situation is still grim in 2017. Although there is room for growth in the overall situation, the oversupply situation of the LCD backlight and lighting market will still be Continued, the car market will grow.
For multinational companies that cannot adapt to the competitive environment of the Chinese market and the global general lighting market, the pace of transformation and upgrading of smart lighting is accelerating.
Samsung Hong Kong announced the launch of a smart Bluetooth LED audio light. This is a smart color LED light with a 360-degree loopback sound. Supports wireless charging, while the lightweight and portable scorpion design can be used outdoors.
OSRAM decided to merge its intelligent lighting business (LIGHTFY) with the digital lighting business unit to combine the strengths of both parties to create synergies and promote Osram's global growth. LIGHTFY generates sales of 20 million Euros per year.
Philips Lighting, which is also the three giants of traditional lighting, announced its latest smart connected lighting project in Madrid this week. It installed 5,400 smart connected luminaires in the landmark Euro Tower, distributed in 14 floors of a 32-story building covering 19,600. Square meter office space.
Behind the true landing of intelligent lighting, perhaps not only the consumer's demand for intelligent control and the gradual maturity of related technologies, but also the huge driving force for further implementation of energy conservation and emission reduction plans from governments and regions around the world.
This week, the European Union released a draft implementation plan for the eco-design regulations for lighting products to reduce energy consumption through improved design performance. Suitable for lighting products or lighting product parts that are marketed or put into use, including lighting devices that are incorporated into other products.
The Hong Kong Trade Development Council released a report. Although the sales performance of the lighting industry is flat this year, the industry is optimistic about the market prospects in 2017. Traditional markets such as North America and Western Europe, as well as the Chinese mainland, are seen as the markets with the greatest growth potential in the coming year. LED and environmentally friendly lighting are the product categories with the greatest growth potential in the coming year. In addition, intelligent lighting systems continue to be considered the focus of the future development of the lighting industry.
LED price increase paradox
This time, the price increase of metal raw materials is not the LED sales are too good, but the metal raw materials are stimulated by the large demand of the lithium battery industry, which further reduces the profit margin of LED. From this point of view, LED is passive, which is undoubtedly worse for the industry chain where the original profit is very small.
On the other hand, although gold, silver, copper, aluminum and other raw materials have generally risen in price, wafers such as Jingyuan and Sanan are also rising in price, but there is still pressure on the price of finished lamps, which determines the package of the middle reaches. The price is even harder. As the price of raw materials rises, it is already compressing its own profits for packaging companies to maintain “no price cutsâ€.
At this time, there will be people who are not big but still claim to be "the leader in high-power packaging". They are still selling products below the cost. If it is not cutting corners, it is not a huge-scale production, not a technical breakthrough, that is, holding a supplier. Even 8 or 9 months of payment comes to "loss operation"?
Could it be that the "leader" is in overdraft consumption? Take the money from the supplier and cash out quickly? Some governments in the Mainland have "fudged money"? I don’t shudder when I think about it. This reminds me of what Fei Ge once said, "Get out of the mix, and come back sooner or later."
Xie Peng has also been involved in the industry for many years, and has helped many companies to do strategic planning, but still has not figured out how companies that sell products below cost should operate. Will this be the highlight of the next packaging industry?
I don't know. If it happens like what I am worried about, it really hurts us to be friends of the packaging suppliers. No way, it is a natural life to worry about, and now it is a sweat for everyone.
Although friends around me say that it is necessary to raise prices, it is too difficult... But as far as I know, a new packaging company listed in Shenzhen has been raised by 5%-10%, and more companies are already eager to try.
Encapsulators who think that the price increase is too difficult may be worth considering. In the face of such a dilemma, whether they can understand the 72-like changes like the "old grandson" and know the gods (not to mention the rising prices of the old grandchildren). Or, with the high reputation of "old Liu", have a group of brothers such as Zhang Fei, Guan Yu, Zhao Zilong and so on?
Out of the world. It is often the case that some great strategists such as Roosevelt, Stalin, and Churchill can be produced during the World War. . . . . So for some companies in the troubled LED industry, this is not a good thing.
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