LED industry warms up downstream application market demand

The terminal manufacturers in the downstream of LED all know that brands and channels are the magic weapons to win. For packaging enterprises in the middle reaches, brand effect is increasingly becoming the key for them to gain a foothold in the market. In the packaging industry with a large enterprise base, the market pattern is not clear. The recovery of LED industry this year, especially the outbreak of demand in downstream application market, may give midstream packaging and upstream epitaxial chip enterprises, which suffered from overcapacity last year, a short breathing space. At the same time, the rapid development of downstream LED lighting puts forward more requirements for epitaxial chips and packaging in the long and middle reaches, with excellent performance, higher luminous efficiency and lower cost, all this is testing the R & D and scale manufacturing capabilities of the upper and middle reaches. The future market competition will focus on the application field of LED Terminal lighting, but what is more important is to form the Echo and cooperation between the upper, middle and lower reaches of the industrial chain, so as to rapidly push the high cost-effective products in the upper and middle reaches to LED lighting enterprises, and accepted by consumers in the terminal market. For midstream packaging companies, this is a rare opportunity and the beginning of the gradual formation of the market pattern. Most packaging enterprises are seeking other methods due to the increasingly low profit margin of single packaging business. Strengthening integration and industrial chain extension have become the contingency measures for most enterprises.