LED lighting market needs to be developed vertically to reduce costs

Shanghai World Expo Cultural Center. LED full-color floodlights with 300RGB color become the main body of indoor lighting, mixing light evenly, and can adjust the angle and position of the projected light.

Providing these lighting equipments is the Zhenmingli Group, which is mainly engaged in the production of decorative lights. This is a lighting group that started in Taiwan and listed in Hong Kong. It is now a well-known enterprise in the LED lighting industry across the Taiwan Straits.

In addition to the Cultural Center, the LED floodlights of the True Mingli Group have also been used in several venues such as the US Pavilion, the Canada Pavilion, the Peru Pavilion, and the SAIC-GM Pavilion.

“LED lighting has a lot of technical space to wait for breakthroughs.” Ye Guoguang, CEO of Taiwan’s True Mingli Group’s LED business group, said, “We have invested more R&D in LED lighting to overcome problems and have opportunities. Technical cooperation with these Expo venues."

LED lighting technology

These full-color floodlights installed in the Shanghai Cultural Center use a new cylindrical lens, with a high-power three-in-one LED as the light source. The red, green and blue mixed-color projection lighting fixtures can be changed to 1600. More than 10,000 colors. These products can be programmed by a computer without an external controller, and the built-in online function can achieve synchronous changes.

LED technology has become a highlight of the new energy-saving technology of this World Expo. Taiwan Pavilion "lighting water platform" can fly 40 盏 LED LED sphere computer, LED large-scale heterosexual PC board LED fine imaging, the world's largest indoor LED screen display space in the National Grid Pavilion "magic box"... ... These are the witnesses of the rapid development of LED technology in recent years.

However, compared with other more mature LED technologies, LED lighting technology has not been able to break through various problems such as insufficient illumination and unstable power supply.

Ye Guoguang said that in response to these ills, Zhen Mingli has invested a lot of research and development power in LED lighting technology in recent years. The LED lighting developed by the company has stronger brightness than conventional lighting under the same illumination. Coupled with the use of computer-controlled full-color technology, the technical advantages of LED floodlights have emerged.

A few days ago, Zhen Mingli's three LED indoor furniture lighting products passed the US “Energy Star” certification, becoming the first Asian company to pass the certification for LED home products.

Ye Guoguang said that in the future lighting market, LED technology has a leading edge in energy conservation and environmental protection. It is reported that the LED bulbs generally used for illumination have an average power of only one watt. Compared with ordinary lighting, the power consumption saved by one month is equivalent to all the electricity paid during production.

"On this basis, we are also paying attention to energy conservation and emission reduction throughout the life cycle of LED lighting, accessory devices such as power supplies, etc." Ye Guoguang said, "We have seen this strategic industry. Great potential, hope to occupy a place in the future competition of new energy economy."

Vertical integration reduces costs

A small LED bulb was $1 a decade ago, and the current price is less than 0.1 yuan.

"LED technology is advancing rapidly, and new markets are always replacing traditional markets." Ye Guoguang said. If the mobile phone is the first time that LED technology exerts huge energy, then the computer LCD screen and LCD TV are the second wave of market opportunities, and the next wave should be the LED lighting technology.

"After the improvement in LED lighting technology, we are thinking about how to reduce costs." Ye Guoguang said.

It is reported that in LED lighting products, power supply is crucial, not only the stability of power supply performance directly affects the performance of LED lamps, but also the price of power devices accounts for one-third of the entire LED products. At the same time, some key accessory technologies for LED lighting are mastered by the United States and Russia, and these factors largely determine the high cost of LED products.

Ye Guoguang said: "In the current situation where there is no way to solve the price of key components such as power supply, the way we adopt is vertical integration, which is to integrate the production process of LED chip production and packaging, and try to find integration space upstream of LED lighting products. In order to increase our market voice in the entire supply chain, while reducing supply links and reducing costs."

At present, Zhen Mingli has its largest production base in Jiangmen, responsible for LED chip packaging technology. After gaining a portion of the midstream market, Zhen Mingli began to integrate upstream chip production.

It is reported that Zhen Mingli has invested 30 million US dollars in Yangzhou to set up an LED chip production base, which is expected to be put into operation at the end of the year. After the production, 30 MOCVD (metal organic chemical vapor deposition) production lines can produce about 20,000 epitaxial wafers per month.

Domestic consumer market is still to be developed

As a Hong Kong-listed company with 27 factories, Zhen Mingli's investment in the LED lighting market has gradually increased in recent years.

Ye Guoguang said that at present, in the overall business of Zhen Mingli, Christmas decorative lights accounted for 60% of operating revenue, LED lighting accounted for 20%, while traditional lighting products were less than 10%. The low-power LED lighting fixtures for the mass market are the focus of the current development of the Zhenmingli Group.

However, his attitude towards LED lighting fixtures in the Chinese market is conservative: “The LED lighting products we sold in the Chinese market last year accounted for about 5%, and the remaining 95% were exported. If our marketing If it is mature and the policy is strong, I think this year's figure should be around 15%."

Since the price of LED lighting products is still several times higher than that of ordinary lamps, the industry's digestive degree for the domestic market is mostly the same as that of Ye Guoguang.

In the domestic LED lighting market, there is almost no direct commercial market. "The B2C market has not been developed at all. At present, there are B2G (Government), which is the government's direct procurement, and promotes the development of the new technology industry in the Chinese market through policies." Ye Guoguang said.

It is reported that the country has not introduced relevant subsidy policies for LED lighting, and the consumption prospects in the domestic market are still confusing.

In addition, industry standards have always been the focus of the LED industry. In December 2009, the National Standardization Administration Committee promulgated six LED-related standards led by the National Lighting Standardization Technical Committee, plus a total of eight mandatory national standards. As a leader in the LED lighting application industry, Zhen Mingli Group has also participated in the formulation of these national standards.

Shanghai World Expo Cultural Center. LED full-color floodlights with 300RGB color become the main body of indoor lighting, mixing light evenly, and can adjust the angle and position of the projected light.

Providing these lighting equipments is the Zhenmingli Group, which is mainly engaged in the production of decorative lights. This is a lighting group that started in Taiwan and listed in Hong Kong. It is now a well-known enterprise in the LED lighting industry across the Taiwan Straits.

In addition to the Cultural Center, the LED floodlights of the True Mingli Group have also been used in several venues such as the US Pavilion, the Canada Pavilion, the Peru Pavilion, and the SAIC-GM Pavilion.

“LED lighting has a lot of technical space to wait for breakthroughs.” Ye Guoguang, CEO of Taiwan’s True Mingli Group’s LED business group, said, “We have invested more R&D in LED lighting to overcome problems and have opportunities. Technical cooperation with these Expo venues."

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