LED light panel manufacturer and supplier

The LED lighting industry is transforming. As LED lighting develops, new technology, applications, and models will drive a revolution in the production process of the industry. Industry insiders have weighed in on the future of the industry at the New LED Technology Conference held by the Shenzhen Light Emitting Diode Industry Association. With more new chip scale packaging (CSP) technology springing up, industry insiders believe that the industry chain consolidation process will accelerate.

”In terms of new technology, package is the main driver transforming the industry,” said ShineOn Vice President Liu Guoxu.

Packaging generally takes place in the middle of the LED supply chain production process. The process begins with upstream chip manufacturers who sell different powered LED chips to package manufacturers. The package manufacturers will then produce components and modules with various functions depending on downstream client demands.

Notable Chinese package manufacturers include Jufei Optoelectronics, Refond Optoelectronics, and NationStar Optoelectronics.

With the introduction of CPS technology, the traditional production process will undergo significant change. Chip manufacturers can completely skip over package manufacturers in the future and supply standard products for downstream applications.

The large volume of package manufacturers in China has driven down profit margins. Several market listed LED package manufacturers have been able to secure higher profit margins due to their larger size. Over the past two years however, oversupply in upstream chip production and changing technology have led to a drop in package prices surpassing even the price drops for upstream chips.

The emergence of new technology has spurred rapid consolidation in the industry, said Shenzhen Light Emitting Diode Industry Association President Sui Shirong. As a result, the entire industry may move from intensive to orderly competition in the coming periods. 

There is not one single method for consolidation within the industry. Previously, Elect-Tech acquired NVC Lighting to establish a unified supply chain. More recently, chip manufacturer Tsinghua Tongfang jumped over packaging and directly purchased downstream light application manufacturer Neo-Neon.

Packaging manufacturer Refond Optoelectronics has expanded into upstream lighting to become a light source supplier, said Chairman Gong Weibin. NationStar Optoelectronics has gone the opposite direction and has developed the lighting industry through their subsidiary.

Jufei Optoelectronics became a competitive force on the market after the launch of their new technology. This prompted large manufacturers to start researching new production processes. Smart lighting will bring new opportunities to the LED lighting market, said Tang Guoqing, General Manager for Samsung LED China. “Young people these days are always chasing the newest devices. LED lighting, which has recently become more digitalized, can cater to demands from the younger generation.

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