Domestic IC price war is urgent


[Source: Gaogong LED's "LED Good Products" October issue (total 58th issue) Wen|Gan Qin] In the field of LED driver ICs, most domestic manufacturers are located in the low-end market of non-dimming, the price war has been A topic that cannot be avoided. The industry believes that in the future, those companies that rely on low prices to grab the market without paying attention to product quality will be eliminated.


LED lighting needs to be truly energy-saving. In addition to relying on the material properties of the LED itself, the conversion efficiency of the LED lighting driver IC also plays a key role.


In 2014, it was called “the first year of LED home lighting” in the industry. Various lighting companies have launched a large number of merchants, which has driven IC sales all the way. The industry believes that with the hot concept of smart lighting this year, the driver IC in the second half of the year will continue to develop in the first half of the year.


Zhang Hongbiao, director of the High-tech LED Industry Research Institute (GLII), said that according to the development speed of the LED lighting market in the next few years, the LED driver IC market will maintain a high growth rate of two to three years. It is estimated that the sales of LED driver IC industry in mainland China will increase by about 50% in 2014, and product shipments should maintain an 80% growth rate.


Although the market prospects are bright, in the domestic LED driver IC field, most of our products are placed in the low-end market of non-dimming, and the price war has always been a topic that cannot be avoided.

Small and medium power price wars

The market price of LED lighting terminals continues to decline, which has brought a lot of pressure on price reduction for supporting ICs and other supporting enterprises. Driver IC manufacturers have come up with low-cost solutions, including cases of invisible traps, some sacrifice input voltage range, some abandoned safety requirements, and even “super-simplification” solutions that break through the quality safety bottom line. .


"At present, the price of a single driver IC product on the market is from 1 to 1 piece, and the fluctuation is very large." Li Zhaohua, deputy general manager of Mingwei Electronics, said, "In terms of profit, the IC market has entered the stage of the Red Sea. Everyone has There is no profit in reducing costs. It is expected that many companies will withdraw in the second half of this year."


"This year's IC price war has been very aggressive, especially for small power." Dr. Yi Yangbo, deputy general manager of Xinpeng Microelectronics, agreed with Li Zhaohua's point of view, "In the IC price, high-end and low-end. The biggest difference in product prices is even 4 to 5 times the price difference."


The industry believes that the price war is more concentrated in the small and medium power field, because the small and medium power is used in ordinary household lighting. For such consumers, their quality requirements are not very high, and the price is the first choice.


In fact, with the gradual release of production capacity of LED driver IC manufacturers in the past few years, the market competition has become increasingly fierce. In the field of indoor low-power ICs, market competition is more intense than that of high-power ICs.


Ma Jiande, sales director of Juxin Photoelectric Lighting Division, said, “In China, the price war in the IC industry is the norm. Generally speaking, the price war between small and medium power is even worse. Especially in the field of household lighting, consumers are more sensitive to price, they tend to Buy a lower price product."

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