As far as China is concerned, it is expected that in the next 3 to 5 years, with the development of upstream chips, indoor lighting products will account for 40% of semiconductor lighting applications. First, LED application products are difficult to dissipate heat. Structural design accounts for about of lamps and lanterns. Chinese industrious people have always priced very low. 20 costs are considered reasonable. The big problem is how to be more innovative, the design is more reasonable. The heat dissipation cost should be maintained at 5, and the actual heat dissipation design is very simple. There are two directions: first, the shorter the path between the LED chip and the external radiator, the better, and the shorter your heat dissipation design will be; Second, the heat dissipation resistance means that there should be enough heat dissipation paths and enough heat dissipation paths. This part of the cost is mainly in the structure, and the cost for heat dissipation is not much. Second, LED application power supply weak power supply is a weak link in led lamps, seriously lagging behind the development of led lamps and lanterns, and the quality needs to be improved. Now the design accounts for about 20 of the cost of lamps and lanterns, which is somewhat high. With the development of technology, the power supply is about 5-10 is reasonable. The high cost of LED is actually compared with other light sources at present. As an LED industry that invented blue LED only in 1990s and LED to the realization of LED white light, the current cost is not high. In particular, LED is environment-friendly, energy-saving and mercury-free, and the price of LED lamps is declining every quarter. I believe it will reach a level acceptable to people in a short period of time. III. Non-core technology in domestic enterprises most of the core patents in the upstream of led industry are in the hands of foreigners. We do not have the core technology, although our manufacturing capacity of LED application products accounts, the share accounts for 50, but the profit is indeed a low link. With the increase of technology and quantity, LED chips will adopt a larger wafer manufacturing process, which will continuously reduce the cost. In recent years, the speed will decrease at 20 per year. In the price factor of led chips, the improvement of light efficiency should also be included in the price reduction, and better products are purchased at the same price. The cost of LED lighting lamps mainly lies in LED chips. As long as the price of chips is lowered, the lumen unit price of LED can be reduced to the same level as that of energy-saving lamps at this stage, and indoor lighting will naturally blossom everywhere. LED chips still have a lot of room for price cuts. As far as China is concerned, it is expected that in the next 3 to 5 years, with the development of upstream chips, indoor lighting products will account for 40% of semiconductor lighting applications.