Industry competition, vertical integration, patent barriers LED packaging companies how to break through the siege

LED industry is booming, attracting more and more competitors to join the war, to bring great pressure on packaging enterprises. In addition to AUO, CMO were established (AUO Lunda new factory preset vertical integration steps) and Qili (CMO hand built LED photoelectric new factory, a hand in the patent layout) layout of the LED market, South Korea and the United States LED LGD manufacturers will also set up a joint venture in Nanjing Dachang CREE LED packaging company (LGD, Cree in Nanjing the establishment of a joint venture company LED package). The industry is expected, on both sides of LED package size manufacturers a total of more than 1000, LED application technology bottleneck still remains to break through, and the international companies patent restrictions, although the industry of numerous business opportunities, but also many obstacles, LED packaging manufacturers in Taiwan area of our country recently working pressure increasing, this year's semi annual report also much lower than expected, billion light shares has a new low, the East Bay, Baihong ligitek also continued to break the bottom.

Because the LED downstream packaging application field is very wide, from the mobile phone keypad backlight lamp and backlight lighting products to long time and large size panel, in the low-end products technical threshold is not high under the condition of light, is China's mainland and Taiwan large and small LED packaging manufacturers add up to more than 1000 estimates, interbank competition remarkable.

Application of panel backlight and LED lighting applications recently formed, even including panel makers AUO, CMO, LGD have also entered the United States, LGD and Cree will be a joint venture factory located in the expected action of vertical integration in Nanjing will be the panel backlight aroused more attention. Although some experts said that the joint package of the two companies have not much impact on the package, and the joint venture to separate the supply panel backlight source to survive a bit difficult. The panel factory to vertical integration of concepts into the LED market is not on the LED, not to see a dragon logic, because the LED yield problems, because the brightness is different and have different applications, not only used in the panel backlight, the panel factory to set up factories, LED packaging factory product flexibility is independent the. However, active layout LED backlight panel factory, the independent LED factory or the formation of a certain pressure, although there is no substantial erosion of LED packaging factory orders, but if you disturb the market price to low-priced products, will be more or less pressure for packaging factory.

Lighting, the international manufacturers set up a number of patent barriers. According to the Statistics Institute research data show that the recent Taiwan area of our country there are a number of manufacturers face patent litigation problems from OSRAM, including Nichia, Philips, Altair, Seoul, Semi and other international companies, almost completely lost in the first instance. In recent years, the international LED companies through cross licensing, strengthening its competitive advantage, except between Cree and Philips has not yet completed the interaction of patents, Cree has been with Nichia and Toyoda Gosei cross licensing (Cree and expand the scope of authorization, Nichia cross) and Toyoda Gosei Osram have also been completed cross licensing (OSRAM and TOYOTA synthetic signed patent as for the Seoul agreement), although the semiconductor by Nichia from the three continents of Europe and Asia across action attacks, but through the authorization to interact with Osram and Cree, has been advancing LED international top six potential.

In the competitive situation of the whole industry is intense, product application of the technical bottlenecks to be overcome, from patent barriers set by international companies and difficult to break, affected by the national economic environment in addition, the terminal demand is weak, under these pressures, China's LED manufacturers, especially the packaging enterprises, can achieve the business opportunities in the LED panel backlight and lighting market, technical bottlenecks and patent barriers breakthrough, and proper adjustment of products and the effective strategic alliance, will become the key factors of the.

Source: China Semiconductor Lighting Network