With the expansion of the domestic LED packaging manufacturers in 2017, the growth rate of China's LED packaging output will slow down in 2018.
The High-tech Research Institute LED Research Institute (GGII) predicts that the output value of China's LED packaging will increase by about 15% in 2018, and the market scale will reach 100 billion yuan. The 2018-2020 China LED packaging industry will maintain a growth rate of 13%-15%, 2020. The annual output value will reach 128.8 billion yuan.
It is worth noting that in addition to the slowdown in the growth rate of output value in the LED packaging industry in 2018, the price of LED packaging devices has also shown a new round of decline.
It is understood that in January 2018, the price of some high-power and medium-power packaging products in the Chinese market fell slightly. In February 2018, the price of most LED packaging products in the Chinese market remained stable, and the prices of a few products continued to decline slightly. As of March 2018, the price of power 3030 LED package products in the Chinese market has dropped significantly, and the price of high-power ceramic substrate LED package products has also been slightly reduced.
It can be seen that since the beginning of 2018, the price of LED packaging products has continued to decrease. So, who is the “pushing hand†behind this price cut?
On the one hand, the price reduction of LED chips drove down the price of LED packaging. As we all know, in early 2018, the price of LED chips ended a two-year stable and small upward trend, and began to cut prices. For example, the prices of mainstream chips sold by LED chip manufacturers such as Sanan Optoelectronics and Huacan Optoelectronics have been adjusted to different extents, and individual varieties have even dropped by as much as 20%.
The chip price reduction for LED packaging manufacturers, the cost pressure caused by the price cuts for two consecutive years has also been relieved to a certain extent.
In this regard, Chen Yongping, general manager of Shenzhen Donghao Optoelectronics Co., Ltd. (hereinafter referred to as “Dongyi Optoelectronicsâ€) said, “The production capacity of the chip factory has been released a lot, and the price of the chip has declined to an inevitable trend. In a sense, it also reflects the package manufacturer’s The optimism of the LED industry. In fact, Donghao Optoelectronics has already received price adjustment support from major chip suppliers in the second half of 2017."
On the other hand, the expansion of production capacity of packaging plants has gradually led to the tilt of supply and demand. It is true that previous packaging companies such as Mulinsen, Hongli Zhihui, and Guoxing Optoelectronics all rushed to open up the production boom. With the continuous opening of production capacity, the inventory of some packaging manufacturers increased significantly, which also lowered the price of packaging products this year. Play with the action.
In addition, based on the scale effect and the improvement of automation, the production cost of a single packaged device product is reduced, which also expands the space for packaging products to reduce the price from the other side.
Undoubtedly, big manufacturers will drive down the price of packaged products, which will inevitably affect the profit margin of SMEs. Fortunately, the downward adjustment of the VAT rate will bring "gospel" to manufacturing companies to a certain extent. On March 28, 2018, the State Council executive meeting decided to deepen the VAT reform measures. The meeting decided that the value-added tax rate for manufacturing and other industries will fall from 17% to 16% from May 1. According to industry analysts, this VAT tax cut directly benefits manufacturing companies, especially high-end manufacturing and technology innovation companies.
Dongxu Optoelectronics, as a national high-tech enterprise dedicated to the production of high-power LED light sources, will also benefit from the downward adjustment of this round of VAT rates. In Chen Yongping's view, "While the VAT rate is lowered from 17% to 16%, the downward adjustment is relatively low, and there will be no room for the future cost reduction of Donghao Optoelectronics. But the introduction of this policy reflects the national policy. The support of the manufacturing industry will help reduce the tax burden of the manufacturing circulation. At the same time, it will also bring about a 'butterfly effect', which will promote the development of the manufacturing industry."
However, the adjustment of the national tax rate is relatively fair for the entire LED industry, whether it is a packaged factory or a small and medium-sized enterprise. On the contrary, the "benefits" of larger manufacturers will be more. Therefore, for many small and medium-sized enterprises, it is necessary to take a more proactive approach to increase product profitability.
In this context, Dongxun Optoelectronics has continuously expanded its production scale since 2017. Through supply chain management optimization and large-scale centralized procurement, the cost of raw materials has been reduced to some extent. In addition, Dongsheng Optoelectronics continues to reduce production costs by optimizing production processes to increase production efficiency and production yield and further reduce costs.
Of course, in addition to reducing consumption and increasing efficiency, the focus of Dongpu Photonics will be placed on the product line layout in 2018. Chen Yongping plans to use his technology advantages in CSP to increase profit margins with differentiated products.
According to Gaogong LED observation, Dongxun Optoelectronics has always insisted on continuous innovation in product technology and continuously provided differentiated products to the market. In addition, we accurately tailor the product to the customer's needs. It is undeniable that it is precisely through the positioning of product differentiation and the unique performance of products. Nowadays, the products of Dongxun Optoelectronics have achieved good results in the fields of lamp, backlight, high-end lighting and special lighting.
“This year, we will continue to exert our strength in CSP series products and ceramic series products. Among them, CSP series will continue to expand the production of 3D white wall craft products, give full play to our technological advantages, continuously consolidate the market foundation and comprehensively enhance the products. Quality, to meet customer needs. Ceramic series products, based on the original 3535, 2525 and other series of products, launched ceramic series of inorganic packaging products." Chen Yongping told Gaogong LED.
As far as CSP is concerned, Dongpu Optoelectronics, as a leading CSP manufacturer in China, has never hesitated in product research and development. For example, in June 2017, a new 3D white wall CSP LED headlight module was successfully launched. And with its compliance with the lighting requirements of the car, the size of the light is close to that of the traditional light bulb, and it is easier to match the light type. At the 2017 High-tech LED Golden Globe Awards Ceremony, it won the Golden Globe Award for Product Innovation.
Chen Yongping said, "Use technology to influence prices and use price to influence the market." That is to say, for Dongxun Optoelectronics, in the face of the decline in the price of packaged products and the compression of profit margins, it will be more technologically innovative. The price initiative, which in turn increases market share.
ZGAR PCC KIT
ZGAR electronic cigarette uses high-tech R&D, food grade disposable pod device and high-quality raw material. All package designs are Original IP. Our designer team is from Hong Kong. We have very high requirements for product quality, flavors taste and packaging design. The E-liquid is imported, materials are food grade, and assembly plant is medical-grade dust-free workshops.
From production to packaging, the whole system of tracking, efficient and orderly process, achieving daily efficient output. We pay attention to the details of each process control. The first class dust-free production workshop has passed the GMP food and drug production standard certification, ensuring quality and safety. We choose the products with a traceability system, which can not only effectively track and trace all kinds of data, but also ensure good product quality.
We offer best price, high quality Vape Device, E-Cigarette Vape Pen, Disposable Device Vape,Vape Pen Atomizer, Electronic cigarette to all over the world.
Much Better Vaping Experience!
ZGAR PCC KIT E-Cigarette Vape Pen,ZGAR PCC KIT Disposable Device Vape,PCC SET,ZGAR PCC KIT Vape Pen Atomizer,ZGAR PCC KIT Disposable E-Cigarette OEM vape pen,ZGAR PCC KIT electronic cigarette
Zgar International (M) SDN BHD , https://www.szvape-pods.com