LED business failures or the end of the era of LED assembly

2013 LED market prospects are generally optimistic about the industry, but with several large LED companies do business has been closed down, once again cast a shadow over the prospects for the development of the industry. In fact, the entire LED industry have been anchaoyongdong, all the time may have business failures, also have new business was born, and we see only a drop in the bucket. Xiongji town lighting is a typical assembly of LED enterprises, no chip, packaging and other core technologies, even seen in collapse from this year's outbreak of LED tide, LED assembly era has ended, the era of capital LED.

This summer the LED industry as the weather as hot upset, cross-strait LED industry reported failures: June, Shenzhen billion light shut down; at the beginning of July, xiongji town lighting collapse; mid Taiwan Qili outgoing message photoelectric business. 2013 LED market prospects are generally optimistic about the industry, but with several large LED companies do business has been closed down, once again cast a shadow over the prospects for the development of the industry.

In fact, the entire LED industry have been anchaoyongdong, all the time may have business failures, also have new business was born, and we see only a drop in the bucket.

Xiongji town lighting is a typical assembly of LED enterprises, no chip, packaging and other core technology, even in the design of any patent, required the whole lamp production parts are purchased, the enterprise only through a simple assembly to the market.

In the assembly process, enterprises do not pay attention to the process of the product, make the product less rough, lack of screw fittings have occurred; do not pay attention to the reasonable collocation of products, 3 x 1W ceiling lamp heat sink is not enough, power driven by constant current drive, the pressure to increase the light efficiency, product factory without any checks, nor for anti-aging experiment.

Enterprises through the compression of materials and other means to reduce the cost of finished product sales, improve market share. Similar enterprises in the previous two years, production and sales are often very large, the achievements of a number of workshops started entrepreneurs.

The production of less investment, low prices, very attractive, became the object of dealers, but the product quality problems have exposed a lack of assembly of LED products, with the phenomenon of return continue to occur, and the price war intensified, many assembled LED enterprises can not support, can only choose to shut down or run away.

When I visited a number of LED companies, they have expressed strong demand for LED lighting, LED companies, there is no doubt that there is a great temptation. As long as the focus on product quality, it is not difficult to survive. But once the small business in order to meet the needs of the blind expansion of the market, in order to seize the market and price war, it is difficult to go further.

Due to the LED development time is not long, LED supplier growth time is short, the production capacity is limited, the pace of its development is not up to the scale of development of the industry, from the beginning of this year, the outbreak of aluminum substrates can be discerned. After the market demand soared small businesses to get orders, but the hardware can not keep up, difficult to buy accessories, had to stop production, watching the loss of orders. Small businesses have limited funds and are heavily dependent on suppliers.

Large enterprises have the funds to build their own hardware workshop, and master the driving power supply technology, and large enterprises from suppliers to obtain accessories have obvious advantages.

And today is just the first wave of closures, will continue until when it is uncertain, but with the elimination of some of the enterprises, the industry can make more healthy development. Some people say that LED threshold is low, two couples plus one or two employees, a few screwdriver can set up a small workshop production. From the outbreak of the collapse of the LED this year can be seen, LED assembly era has ended, LED capital era opened; LED spell price era has ended, LED brand era has arrived.