LED patent barrier breaking is expected to lower the price of LED products

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 launch 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 whole industrial chain, while midstream LED packages earned about, the simple application-oriented production and processing enterprises at the low end of the industrial chain only have a profit of 10. The lack of innovation and research and development is only processing people, and the added value of products is very low. Huang shuiqiao, chairman of the Quanzhou LED Industry Technology Innovation Strategic Alliance, said. At present, there are 200 or 300 LED enterprises in Quanzhou, with an output value of more than 5 billion yuan and a lack of 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, resulting in only a handful of LED suppliers. However, the expiration date of these patents is in the past two or three years. Once it fails, it is believed that a large number of LED manufacturers will soon emerge in China and quickly lower the selling price. Huang shuiqiao believes that this is the time for some more powerful Quanzhou Enterprises to intervene in the upstream of the industrial chain and conduct core technology investment and research and development. Sumit electronics (Xiamen) Yang Qingshan, chairman of the company, believes that Quanzhou Enterprises that have long been engaged in the production and sales of downstream products have more advantages in investing in upstream technology research and development. The enterprise grasps the detailed situation of the terminal product sales and carries out the research and development of the core technology of the product according to the customer's needs, thus saving the risk of crossing the river by feeling the stones. For most enterprises, it is not realistic to invest heavily in core technology research and development. Upstream and downstream cooperation is also a choice to face business opportunities brought by the expiration of core technologies. Yang Qingshan said that there are Quanzhou Enterprises in all aspects of the LED industry chain. However, due to factors such as raw material imports and technology patents, there are still a few Quanzhou Enterprises that have truly invested in this industry. 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 leads to high prices of related products. Yang Qing said that this has brought room 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.