LED industry follows the market rules of the semiconductor industry

As we all know, LED is because of its high luminous efficiency (energy saving), long life, intelligence and other advantages to become a substitute for traditional lighting. So, many LED manufacturers are very natural to imitate the traditional lighting of the operating mode to the operation of LED lighting. But this is fundamentally wrong. LED is a kind of semiconductor technology, LED industry should follow the operating mode and market rules of the semiconductor industry.

In the LED application products, both in terms of performance determinants or cost factors, the small LED chip inside the product occupies more than 60% of the entire product. The upstream chip is processed by the IC technology in the semiconductor industry, which has the characteristics of high automation, high consistency, high integration, high R & D costs, low processing costs and so on. This feature is obviously different from the traditional lighting field.

LED industry has an obvious midstream link - packaging components, and the packaging process is basically the use of standard semiconductor packaging process, such as SMT, reverse welding, etc.. Midstream packaging standardization is critical to the diversification of downstream applications.

Specifically, different from the traditional lighting, LED lighting is a semiconductor field, with technology intensive, design and processing can be separated, the middle and upper reaches of the industry chain can be standardized. So, in the semiconductor industry, widespread production scale and production process is relatively standardized chip and packaging factory, design company with leading production foundry from product design, high cost and technology update soon, and the processing cost of the product is relatively low.

Application for the LED manufacturers, the standardization of the key middle LED package makes the downstream application competitive products is how to carry out differentiated and personalized design, how to do "I have no people, I have strong. So, according to the company's own resources, how to find how accurate market segmentation, mining potential the market opportunity, how to consolidate the existing market share, and how creative new markets is a key task of marketing department. This requires the market personnel must have extensive technical background, because the product design application relates to the technical field of quite a few, such as mechanical, thermal management, electronic control, semiconductor, optical properties, and even extends to the creative advertising, psychology and other fields.