LED plastic packaging market "invisible war" continued the bigger situation now

From the price war to the patent war, to compete in the market segments, LED packaging silicone industry is a new historical change time. Behind this "love and hate" change, LED lighting market is gradually mature, the competition from the start from the simple price competition into consideration, UV LED, small spacing display market space continued to enlarge, it also forced LED packaging silicone companies began to seek a new "reborn" the road. Recently, LED plastic packaging giant Dow Corning announced that the European Patent Office patent number said no. EP-1556443 will remain effective. This patent is the hands of Dow Corning intellectual property product line, high refractive index (RI) phenyl silicone rubber technology optical package. It is understood that, plastic packaging can provide better performance of the light output, improve reliability and with other high brightness LED lighting required advantage. In rapidly changing European markets, the decision of the European Patent Office has an important influence on the financial status of Dow Corning patent layout. The integrity of the patent is of strategic importance, and also has a production base in the Dow Corning LED all over the world, such as the United States, Japan, South Korea and Chinese. As the main battlefield of LED lighting market, Chinese of Dow Corning it means is not right, the patent will undoubtedly make complete already in the China "battlefield" some "unable to stand the strain any longer with greater" Dow Corning leeway. Delicate market in the domestic LED package only a short while ago, silica gel fight in the war, Dow Corning, ShinEtsu and other international giants with brand advantage and product technology level leading unlimited scenery take cities and seize territory. Statistics data show that before 2010, more than 75% imported silica gel LED packaging market. At that time, the domestic glue companies to more difficult to lower the technical level of the market for the export of low silica gel, the beginning of the realization of LED encapsulation of silica gel localization. It is understood, LED packaging silicone although occupied in the LED device in a relatively small proportion of the overall cost, application materials is very important, the overall performance of LED devices play a decisive role. "Packaging enterprises in the selection or replacement of glue is very cautious, need to go through rigorous testing to determine whether the parameters can meet the requirements for packaging and application, domestic and international companies, usually takes a year." Domestic manufacturers Hongli Newell package deputy general manager Wang Gaoyang told the new material online. However, with the rapid rise of the domestic LED lighting market, as the core of the glue packaging accessories demand soared, which naturally attracted attention of many enterprises and capital, domestic enterprises began to frequently go on silica gel package front and multinational companies compete. Especially since 2013, backlight lighting market demand continues to increase, driven by the rapid growth in production of white LED package, LED package as silica demand accessories also continued to increase rapidly, especially COB and IC in white packaging accounted for ascension is accelerated with the growth in demand for silicone LED package. With the improvement of domestic LED encapsulation property of silica gel as well as a substantial drop in the price of imported silicone glue, the advantage of weakening, the domestic sales of LED packaging silicone has far exceeded the amount of imported and domestic sales of silicone LED package also has to catch up with imports. As a packaging silicone enterprises responsible person said, the localization of these materials is the inevitable trend of glue, because technology becoming more and more mature, domestic glue etc. these materials and foreign enterprises will continue to narrow the technology gap, and the price advantage will become more prominent. But with the expansion of market share, domestic glue production soared, also entered the fast fierce price competition situation, to further decline in gross profit. Packaging silicone enterprises is under the dual pressure of "force", is a packaging factory continuously price request, on the other hand, facing technical product upgrades, rising labor costs and other pressures, embarrassed dilemma. Especially in 2015, LED market changed the rapid growth of the past situation, in a downturn, many enterprises worrying profitability, increment does not increase profits as many enterprises cannot hide the past "Curse", in the middle of the packaging field is particularly prominent. Survey statistics show that in 2015 the China mainstream LED package price cut, the decline was 50%. Intense competition and the pressure of continued expansion of the plant, in 2015, more than 1/5 of the packaging plant opt out or exit in disguised form. As an important auxiliary material for LED package, such as silica gel material occupies the proportion of the cost of an important part of the package, in order to reduce the LED cost of the industrial chain, packaging companies will glue and other accessories as the main way to reduce costs, packaging materials enterprises are facing shrinking profit margins, survival increasingly difficult. Glue market generally relatively sluggish sales increased last year, but prices fell phenomenon highlights." Guo Jie new material general manager Chen Yongsheng said that ordinary LED glue has no room for price cuts, one or two years ago but there is a certain decline in the range of 10%-20%, but now the price has been basically the bottom, glue companies almost no profit space. Statistics show that in 2015 Chinese LED packaging silicone market sales reached 1500 tons, an increase of 21.4%, the output value of about 1 billion 120 million yuan, down 3.4%. Glue prices fell more than 20%. Although just past the first half of 2016, the LED market began to pick up, prices rose slightly, but the silica encapsulated "dark war" but increasingly fierce.