As the price of LED packaged devices continues to decline, the gross profit level of related companies has also dropped to a new low. Finding new profit growth points has become the most urgent and most concerned topic for enterprises.
In addition to reducing costs through large-scale expansion, some companies have broken the low-margin dilemma by focusing on emerging markets with high gross margins, such as LED backlighting, lighting, plant lighting, and medical lighting.
When it comes to plant lighting and medical lighting, you have to mention UV LEDs. It is understood that the output value of UV LED in 2015 is 135 million US dollars. It is expected that the market size of UV LED will reach 300 million US dollars by 2017. The huge market potential of UV LED has also attracted the competition of many LED companies in China.
For example, Hongli Optoelectronics Co., Ltd., a well-known domestic packaging company, announced its involvement in the field of deep-UV LED packaging in 2014 and established a professional microbiology laboratory. In 2015, its UVA and UVC packaging products were mass-produced. Similarly, in 2014, National Star Optoelectronics also launched Its own UV LED device, and in 2015 launched 1215, 3535, 6363 UV LED devices in COB package.
"In order to increase revenue and ensure profit, I believe more and more companies will enter the field of UV LEDs." Xie Mingxun, deputy general manager of Jingyuan Optoelectronics R&D Center, said that Jingyuan Optoelectronics is optimistic about UVA LED and UVB LED market. Future UV LEDs will also become a business group for the expansion of Epistar's plans.
At the capital level, Yuanrong Optoelectronics acquired Qingdao Jiesheng with high-profile acquisition. It is also the latter's fifteen years of intensive research in the field of UV LED chips; and Guoxing Optoelectronics has invested in and increased the UV chip business of Yaweilang. It is to meet the blue ocean of ultraviolet LED, enhance its competitiveness in the field of ultraviolet LED, advance layout, and wait for the outbreak of the ultraviolet LED market.
All is ready except for the opportunity. Although everyone is optimistic about the future market prospects of UV LEDs, it is still unknown when the market will break out. Hongli Optoelectronics said that "UV LED technology has a high threshold, and the original materials are special, and the packaging technology is special. It needs to be verified by special programs. Although there are few competitors, the industry chain is also a problem."
In addition, the price is also a problem that cannot be circumvented by the promotion of UV LED scale. Wu Yongsheng, general manager of Xinguanglian, said, “The UV LED application is extensive, but it is necessary to develop MOCVD equipment with a reaction chamber temperature greater than 1400 degrees. However, at present, this commercially available high temperature MOCVD is in a missing state, so the price of UV LED chips is short-term. It will be difficult to come down."
At the same time, entering the field of ultraviolet LED, the high equipment and technology investment in the early stage will also increase the production cost of ultraviolet LED invisibly. According to industry insiders, the current price of UV LED chips is dozens of times or even hundreds of times the price of ordinary blue LED chips. The price difference is quite disparity. In addition to high-end medical lighting, ordinary consumers cannot accept it.
However, for domestic LED companies, choosing to enter a segment with higher profit margins is an irreversible trend. I believe more manufacturers will enter the UV LED market. As the UV LED equipment matures and the supply chain becomes more sophisticated, the decline in UV LED prices is only a matter of time.
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