2013 High-tech LED Conference Session 3: Supply Chain Reconstruction in the LED Lighting Era

[High-tech LED reporter Zhao Hui Guangzhou reported] Since the beginning of this year, the market demand for LED lighting terminals has increased rapidly, and the general capacity utilization rate of lighting companies is close to saturation. At the same time, it also drove the capacity utilization rate of the chips and packaging links in the upper and middle reaches to increase rapidly, and the overall trend of the industry is improving.

But at the same time, there are also many problems and reflections. There are both the quality of LED lighting that are reflected by the "quality gates", and the vicious competition of the whole industry caused by the capital of listed companies and the channel's dark war. There are also bankruptcies and bosses running. The industry is shocked and vigilant.

In addition to standardizing the product quality in the terminal market, how to build an efficient, complete and low-cost supply chain system is the key to establishing its core competitiveness.


Especially in the past few years, the LED industry has changed rapidly, and the supply and demand situation and price changes in all aspects of the supply chain have become the focus of special attention of LED companies.



On the morning of November 26th, the “Supply Chain Strategy” of the 2013 High-tech Conference, which was named by Jingke Electronics, debuted at the Guangzhou World Trade Center, including more than 500 LED CEOs and representatives of industry enterprises including G20 Summit members. In-depth discussion and exchanges on how to reconfigure the supply chain in the era of LED lighting applications, and strengthen cooperation between upstream and downstream industry chains.

Dr. Zhang Xiaofei, CEO of Gaogong LED, said that any company, which is part of the entire supply chain system, must have its upstream and downstream, and must have its partners and competitors. Enterprises should pay attention to their customers, one Products, externally to improve the competitiveness of products, from the customer's point of view, to have product value. Customers who buy your products are not just a function, they are not buying your technology, and the value of the product is a comprehensive one. Covers prices, brands, services, and differentiated features.

Gaogong LED CEO Dr. Zhang Xiaofei



"A lot of closed companies, on the one hand, are not doing well in the supply chain system. He is busy with production every day, every day is under pressure, and he has never found his core partner." Dr. Zhang Xiaofei believes that the quality, materials, and quality of suppliers Accessories, determine the yield of your final product, do not have a good supply chain system, do not know the suppliers, do not know how to deal with the relationship between such a business, such a business can not succeed.

Xiao Guowei, Managing Director of Jingke Electronics, Zhou Xuejun, Marketing Director of Philips Lumileds Asia, Li Jiansheng, Chairman of CDH Technology, and Liu Wei, Chairman of Yuanda Electronics, gave a keynote speech on packaging enterprise positioning, development of middle and upper reaches, and how to do a good job in the supply chain. He also had a round-table dialogue with Chen Bin, general manager of Zhonglong Transportation, and Ye Jianbo, general manager of Zhongheng Paiwei.

Packaging company's positioning in the market strategy

"LED packaging will change in the future. From the perspective of lighting, due to the development of technology, the evolution of the market will be merged and changed. This can not be very simple, like the upstream, midstream, and downstream in the traditional sense." Xiao Guowei Said that as a mid-upstream supplier, Jingke Electronics will not do LED lamps. In the future, we will become a close and close partner of LED lamps.

Xiao Kewei, Managing Director, Jingke Electronics




Xiao Guowei believes that the entire future development, before 2020, especially before 2017, with the promotion of technology, the price of packaging technology will continue to decline. In the next few years, LED chip packaging technology, LED chip and white light packaging technology will have integrated evolution and vertical integration of technology in the next few years. These technologies have become a direct influence on the shape, performance indicators, digitization, and intelligence of LED bureau products. The importance of system integration has become increasingly prominent. The so-called midstream, downstream, and upstream relationships will eventually become this kind of smile curve, and the upstream will become the part of the device supply. The middle reaches are the assembly of the lamps, and the downstream is the design, channel and system design of the lamps.

For the packaging enterprise, two channels, one is to make the epitaxial chip upstream, and the other is to go downstream and do the lighting. But the encapsulation process is impossible to disappear, and in the process, it will evolve through some updated functions.

"The vertical integration of the LED industry's own technology, but also through the cross-industry, interdisciplinary integration, to achieve industrial leap, rapid development." Xiao Guowei optimistically said that the new LED lighting system, LED lighting products will gradually integrate in the next three to five years Digital, intelligent systems and intelligent lighting will create a huge market beyond traditional lighting.

LED midstream opportunities under the reconstruction of lighting supply chain

"LED has four of the most critical technologies: epitaxial materials, chip design, fluorescent materials, packaging. Fluorescent materials, packaging and packaging are closely related to the midstream industry." Zhou Xuejun believes that the package form has undergone very large changes, and this change is still Extended. In the future packaging, the products of all packaging factories are not developed by the middle and upper reaches, but are developed according to the needs of downstream customers, the need for performance, and the need for cost performance.

Zhou Lujun, Marketing Director, Philips Lumileds Asia



Zhou Xuejun said that the demand for lighting is also changing, and this demand is also affecting the middle and upper reaches. The lighting was originally illuminated on both sides, from top to bottom. But now it is space lighting, 3D lighting, trace back up, a lighting device needs to change color and light, in a very compact and small environment, which requires the lamp to be more compact. It is now part of the replacement phase and the second phase to the integrated lighting area. The third stage is to move towards the direction of intelligence.

Regarding the competition between the upstream and the upstream of the industry, Zhou Xuejun believes that this cannot escape the competition in technology, cost, scale, speed and talent. Of course, this competition also has competition in ethical and intellectual property protection.

Play well package

What kind of packaging enterprise is a successful enterprise, Li Jiansheng believes that happy enterprises are ranked first. This enterprise has an idea, its technology and products are guaranteed, which is the basis for the survival of the enterprise. Leading, playing for a long time, and gaining market recognition, these six items add up to the foundation of a successful business.

Li Jiansheng, Chairman of CDH Technology




At present, a large number of packaging companies have been involved in lighting companies, while a large number of lighting companies have bought packaging equipment and are also producing parts themselves. Li Jiansheng believes that to be the best value for money, professional people must do professional things.

“It is the key in whether it is dressing, flipping, and good value for money. All the analysis is only the analysis at this stage. At least within three to five years, the situation will be widespread.” Li Jiansheng said in the medium and long term, new The structure, new technologies will emerge in an endless stream.

Supply chain determines future success or failure

“Customers are pursuing not only low prices, but the highest value. How to create the highest value and provide customers with good products. In addition to our own innovation, the value brought by the supply chain is immeasurable.” li Liu Wei It means that the packaging industry, equipment, materials and applications have their own unique value chain and profit model. Whether it is a successful manufacturer or agent, it must be an expert in this industry. Understanding the industry and understanding the industry's laws is a very important competitive indicator.

Chairman of Yuanda Electronics, Liu Wei


Now the manufacturing cost of the LED industry has reached a limit, how to change? Liu Wei believes that, first, the integration of internal resources of enterprises; second, continuous innovation of products; third, cooperation in supply chain. In the future market, real competition is not the competition between enterprises and enterprises, but the competition between suppliers and suppliers, supply chain and supply chain. The supply chain brings the value chain, which makes all businesses create value.

“Determining the best partners to ensure the maximization of the supply chain. This way, the company is connected by the external flow, and the procurement and production of the company becomes a chain, thus solving the problem between the customer and the production. This is like martial arts novels. Supervise the second pulse.” Liu Wei said that the value of the supply chain has a huge impact on the enterprise and is irreplaceable. The supply chain accounts for half or even more of the company's revenue. From the basic level of the supply chain, how to control costs, reduce costs, and enhance the competitiveness of enterprises themselves. 60% of the variable cost of the enterprise, that is, liquidity, is governed by the organization's external decision-making. The supply chain concept, from the second-tier suppliers to the first-tier suppliers, to wholesalers, distributors, customers, in this supply chain, 60% of the capital is made externally. Logistics overhead, mainly product transportation, warehouse costs, logistics management, storage costs. These are the costs involved in the supply chain. Supply chain prices are low and there are still huge business opportunities.

Ye Jianbo explained the importance of the enterprise supply chain from how to make a good power source. He believed that the procurement platform must be mature, and the skills in the semiconductor are very important. At the same time, special supporting cooperative enterprises are needed to develop together.


Communicate with foreign businessmen


Round table dialogue



Chen Bin believes that if the technology is mature, the price of lamps will drop by 25%. But instead of relying on absolute price declines to achieve the most cost-effective reduction, now the important energy is spent on the structure, not on the light source. In general, the future market changes must have its own strength.


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