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LED dilemma: the whole industry chain price reduction

10/30/2011

Most of us have been accustomed to the use of incandescent lamp and energy saving lamp, but according to the National Development and  Reform Commission recently announced "Roadmap of China phasing out the incandescent lamp", from October 1, 2012, China will gradually ban  the import and sale of general lighting with incandescent bulbs and bid farewell to the stage of history by 2016. There are forecasts  that after all incandescent lamps have been replace, annual electricity saving can more than 48 billion watts. To energy saving lamps,  halogen bulb and LED light instead of incandescent lamp are becoming a global trend. The fluorescent lamps are also facing the problem of  mercury pollution, so LED light becomes much desired generation product, it is not only high brightness and long life, but also more  energy saving. However, the situation of the LED industry is now far from inspired.
This reporter has learned the price of 8w LED light are 293 yuan in last July, its price in June is 120 yuan. The price of LED grille  light decline from 370 yuan to 230 yuan. Although many LED products prices fell by nearly half, but the price of incandescent and energy  saving lamps are still poor. For example, 7W led ceiling light is $ 90, while the energy saving lamp as long as 10 yuan, but incandescent lamp  only 1 yuan.
LED whole industry chain price cuts, packaging corporate bankruptcies
While LED light are optimistic about the industry, but it is not main force in residential lighting. In LED industry chain, the sapphire  substrate, LED chip, LED packaging and application are several major industrial chain, is the most important downstream market. But the  market is so weak, upper and middle stream LED market bound to be affected.
Reporters visited the many LED light manufacturers in Shanghai, it found various production processes have suffered substantial price  cuts. The average price of LED chip has decline 25%, and the largest price cut of 42%; LED package devices on average 23% price reduction, the largest price cut of 37%; LED application products the average price reduction of 21%. LED industry price in all aspects decline is a global trend.
 

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