LED packaging industry analysis in 2020: current situation, difficulties, prospects, trends

2. Development difficulties of the LED packaging industry

1. Uncertain economic environment and intensified market competition

Currently, the downward pressure on the global economy has increased, uncertainty in trade disputes has increased, the COVID-19 epidemic continues, and China's economic growth has slowed down. At present, the LED industry has oversupply, overcapacity of chips, more intense competition, and an obvious downward trend in prices. These unfavorable factors make the development of LED companies face great challenges. LED companies need to comprehensively improve their own strength to achieve sustainable development.

2. Challenges to the company’s own technology, management, product quality and talent

With the development of the LED industry and the intensification of market competition, the requirements for the technical level, product quality stability and cost of LED companies are getting higher and higher, otherwise they will be eliminated by the market. Therefore, higher requirements have been put forward for the technology development, lean management and quality control of LED companies, as well as higher requirements for professional technical and management talents. Therefore, the core talent competitiveness of LED companies in the future is the key to corporate competition and is also a challenge faced by companies.

3. Development prospects of the LED packaging industry

1. The broad market application prospects have laid a solid foundation for the development of the industry

In recent years, the application of LED has continued to expand into new market areas, and the market prospects and capacity are huge, providing good opportunities for the development of the LED industry. In the display field, with the intelligent With the popularization of energy equipment, LED applications have developed rapidly. In the field of lighting, in addition to the traditional indoor and outdoor general lighting fields, LED has achieved rapid development in new professional lighting fields including automotive lighting, high-end commercial lighting, plant lighting, UV curing and disinfection and sterilization.

2. National policy support provides a good external policy environment

LED plays an important role in reducing energy consumption. Against the backdrop of the country’s increasing emphasis on ecology, environmental protection and sustainable development, the national level will continue to support the development of the LED industry. At the same time, affected by the international situation, the country is increasingly paying attention to the development of the semiconductor industry. As an optoelectronic semiconductor industry, the healthy development of LED is also in line with the national development strategy.

3. The competitiveness of foreign LED companies has weakened, and domestic companies with technology research and development advantages are welcoming Development Opportunities

As ​​leading companies in the domestic LED packaging industry continue to strengthen research and development, domestic packaging device technology continues to mature. The performance of domestic packaging devices is equivalent to that of imported packaging devices, but the price advantage is obvious, and the competitiveness of domestic packaging devices has become increasingly apparent. By seizing the opportunity of the rapid expansion of LED in emerging application fields and having the advantages of large-scale manufacturing and cost control, companies with technological R&D advantages will usher in new opportunities for development.

4. Development Trends of LED Packaging Industry

1. Miniaturization

Electronic products are developing in the direction of "light, thin, short and small", requiring integrated circuits and electronic components to be miniaturized accordingly. Miniaturized LED devices can be used in In the field of further improving the level of product detail, for example, applying to smartphones conforms to the current aesthetic trend of narrow bezels; applying to outdoor large screens further improves image quality and color, and solves the seam problem of the original technology, etc.

2. High power

With the miniaturization of LED devices and the transformation of automotive lighting from traditional halogen lamps or xenon lamps to LED lamps, the power of LEDs is also developing towards high power. This requires packaging companies to be more strict and precise in product design and material selection, and fully consider the light extraction efficiency and heat dissipation performance of the lamp beads.

3. Market competition will further intensify, and industry concentration will be further strengthened

Affected by the global economic downturn, Sino-US trade disputes and the new coronavirus Affected by uncertain factors such as the pneumonia epidemic, market competition in the LED packaging industry will further intensify in the future. In the future, only LED packaging companies with good supply chain control, good production efficiency and yield control, and scale advantages and product performance advantages will continue to survive. LED packaging companies that lack competitiveness will be eliminated. It is an inevitable trend to further strengthen the concentration of the LED packaging industry.

4. The high-end market will realize import substitution, and companies with advantages in technology research and development will usher in opportunities

At present, some domestic packaging manufacturers have established a good brand image in the field of high-end packaging devices, and the high-end market share of domestic packaging devices has increased significantly. As these manufacturers continue to strengthen their research and development efforts, the high-end packaging product market will further gradually realize import substitution in the future, and companies with technology research and development advantages will usher in development opportunities.