Breaking down LED patent barriers is expected to lower LED product prices

by:ALLTOP      2020-01-02
Within two or three years, a number of important core patents in the white LED field will continue to pass the patent protection period of 20 years. Both Quanzhou enterprises and capital market investors are eager to try the LED industry. With the gradual start-up of broader downstream applications, the LED market will see explosive growth in the future. Upstream epitaxial wafer and chip manufacturers earned of the profits in the entire industrial chain, while midstream LED packages earned about of the profits, simple application-oriented production and processing enterprises at the low end of the industrial chain have only profits. Lack of innovation and research and development, just to give people to do processing, the added value of the product is very low. Huang shuiqiao, chairman of Quanzhou LED Industry Technology Innovation Strategic Alliance, said. At present, Quanzhou has 200 or 300 LED enterprises with an output value of more than 5 billion yuan and lack well-known brands. In the past, the main reason for the high price of LED was that most of the manufacturing patents were controlled by Japanese manufacturers, and they were unwilling to authorize them to the outside world, resulting in only a handful of LED suppliers so far. However, the expiration date of these patents is within the next two or three years. Once they expire, I believe a large number of LED manufacturers will soon emerge in China and the selling price will be lowered quickly. Huang shuiqiao believes that this is the time for some more powerful Quanzhou Enterprises to intervene in the upstream of the industrial chain and invest in core technologies and research and development. Sumit electronics (Xiamen) Yang Qingshan, chairman of the company, believes that Quanzhou Enterprises that have been engaged in the production and sales of downstream products for a long time have more advantages in investing in upstream technology research and development. The enterprise grasps the details of the sales of the terminal products and conducts research and development of the core technologies of the products according to the needs of customers, thus eliminating the risk of crossing the river by feeling the stones. For most enterprises, it is not realistic to invest heavily in the research and development of core technologies. Upstream and downstream cooperation is also a choice to bring business opportunities when core technologies expire. Yang Qingshan said that Quanzhou Enterprises are found in all aspects of the LED industry chain, but due to factors such as raw material import and technology patents, there are still a few Quanzhou Enterprises that have really invested in this industry on a large scale. Xiamen enterprises also have their own troubles: Although Xiamen LED leading enterprises occupy a position in the domestic industry in the research and development of chip technology upstream of the industrial chain, however, the production strength in downstream product application and packaging is weak. This kind of inverted triangle industry status makes the upstream technology and application transformation out of touch, and even leads to high prices of related products. Yang Qing said that this has brought space for cooperation. LED enterprises carry out division of labor in the industrial chain, leading enterprises in the industry carry out upstream technology research and development, and small and medium-sized enterprises can strengthen themselves through application and packaging.
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