Three major reasons for the lost technical direction of the LED industry and solutions

- Dec 10, 2019-

Three major reasons for the lost technical direction of the LED industry and solutions

   In the past month, I visited many LED industry companies. Among them are packaging companies, lighting, lighting and power companies. Feel free to talk about how you feel chatting with so many business owners or technical leaders and your reflections are just personal views.

    One of the reasons for the loss of technological direction: focus on production and light on research and development.

    At present, everyone's business is good. Chip factories have begun to raise prices. Chips are often out of stock. The factory operates 24 hours a day. Ask carefully, what are you doing? The most popular feedback was: SMD 2835, SMD 5730, COB, COB flip and light engine. Then again, what are you going to do next year? Most companies report that the expectations for next year are still scarce, and they may continue to make current products. The problem here is that the technical direction of the packaging company is not clear, or it is seriously lost. Most packaging plants do not have R & D departments, only engineering and technology departments. Engineers in the engineering technology department are mainly responsible for the improvement of production line defects and process adjustments, and have no time to take care of changes in chips, support materials and other markets. The product line basically follows the big companies. Whatever companies such as CREE, PHILIPS, and OSRAM do, everyone will follow up. This is really a good way to adopt a follow-up strategy to wait for the market to open when the technical route is not clear at the beginning of the industry development. However, when LEDs have already entered ordinary people's homes, they need to compete for product innovation. How to stand out among many companies to attract the attention of customers. Many companies use price strategies. As long as you dare to sell one, it will drop to 9 cents immediately. After a few rounds, everyone was out of profit. The market has become a completely competitive market, and manufacturers do not have the right to determine prices. At this time, the person in charge of the company wants to do it again? What new products? Looking back, I found that in the past few years, in addition to earning a bunch of equipment that has become second-hand, and feeding hundreds of employees, there are few left after paying millions of taxes. This is still a more successful company. Those who went bankrupt would not say. The company found that the investment in technology research and development was wasted due to busy production in these years, and it was found that it had no new products and new technologies. This has resulted in the above technical loss.

   Two reasons for the loss of technical direction: downstream reverse guidance?

The client will decide the company's resource allocation. Because companies need to maintain product profits and invest limited resources in products that can produce more output, customers who purchase such products virtually allocate company resources. The downstream lighting factory determines the product investment and technical direction of the packaging factory. Since most of the products made by LED lighting factories are still replacing traditional lamps, LED lighting products are directly cost-effective compared to traditional lamps. Traditional lamps have gone through decades from the production of glass to the processing of metal. The development of nearly a century has reached the optimization of technology, the optimization of cost and the formation of a relatively stable price. The popularity of LED lighting products is less than ten years, and many technologies are still worth discussing. The insufficient industrialization of some technologies has led to high costs. In the process of competition with traditional lighting companies, lighting factories will put forward requirements for LED packaging devices: light efficiency, color quality, thermal conductivity and price. These factors will determine the resource investment of LED packaging factories: reduce costs or improve quality? Ordinary packaging factories first see the price, and believe that as long as the price is lowered, customers can be better developed. As a result, packaging factories began to find chip, bracket, glue, phosphor and other raw material manufacturers to reduce prices. The stent was reduced from tens of yuan / K to several yuan / K, and was completed in just two years. Chip factories are working hard to increase equipment and expand factories to dilute high investment in equipment. Phosphor companies have become more competitive, and some companies have begun to give away yellow phosphors for free (with red powder sales), still remember that Hongda Yellow Phosphors sold for more than 20 pieces a gram. Another reason for lower prices may be the formation of qualifications for R & D personnel in the industry chain. Most of the extension R & D personnel are doctors of prestigious universities and returnees (except for Beijing Hukou). The chip R & D personnel generally have a master's degree. The R & D engineers of packaging companies are mainly composed of undergraduates. The lighting factories are mainly undergraduate and specialized. Most of Deng's staff are nine-year compulsory education graduates. (The above part is not to discriminate against low-education employees, but to control technical details and directions. There are differences between various education personnel, and there are many professionals in vocational and technical colleges who are better than doctors). Doctoral students hope that undergraduates can make requests, and undergraduates need to ask junior high school students for technical feedback. Can this feedback mechanism find the right technical issues (apart from price)?

 Three reasons for the loss of technical direction: the rising curve becomes slow?

The development of any technology cannot always run with the same 45 ° angle curve, but the upward trend slowly slows down. LED technology progress is determined by the epitaxial mechanism and chip structure and package design. At present, the Droop effect of the main heterogeneous substrate of blue and white LED chips (production of GaN on sapphire substrate) always exists, and the quantum well structure is basically shaped. The use of graphics substrates, buffer layer optimization, surface roughening, transparent conductive layers, current extension layers, etc., has made the overall performance of the product smaller and smaller (it will definitely increase, but only slightly). The effects of yellowing resistance, refractive index improvement, bottom reflectance, and optimization of solid-state glue on packaging materials are also getting smaller and smaller. A relatively stable curve has been formed, causing enterprises to wait and see the next development.

How to solve the lost technical direction?

1. Adhere to the spirit of artisans and find high quality (not high profit) customers. The direction of technological development is not terrible. The terrible thing is that we have lost our ingenuity. Only high-quality customers can provide positive feedback instead of just pressing on prices. Only by getting positive feedback can we better find the product direction and match the technical direction.

2. Focus on product research and development. The product research and development system maintains existing customers, and the technology research and development platform guarantees the development of next-generation products. You need to settle down to do technology, and become an engineer instead of a technician.

3. Prudent investment in niche markets. Infrared and ultraviolet are very hot at present, so it is recommended to be cautious. The niche market that everyone sees is an illusion, and once it enters, it becomes the Red Sea.

4. Challenge products with thresholds. It's a good thing to have a technical threshold. Enterprises need to overcome obstacles, and competitors need to.

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