1. Development momentum of semiconductor lighting market

As a new generation of revolutionary lighting technology, semiconductor lighting is incomparable in comparison with traditional lighting such as incandescent lamps in terms of energy conversion efficiency, luminous efficiency, lifetime, color rendering performance, and safety. The advantages. Since the advent of LED in the 1960s, the semiconductor lighting market has developed rapidly, both in the application field and in the market. From the perspective of the development of the semiconductor lighting market, government support and the decline in LED costs are the main driving forces for the rapid development of the semiconductor lighting market.

From the perspective of the development of the global LED industry, governments have introduced corresponding semiconductor lighting support and encouragement policies to promote the development of the semiconductor lighting market in the country. At the same time, governments have begun to list some high-energy lighting products as banned, and incandescent bulbs bear the brunt. The ban on incandescent bulbs first started in Australia, the United Kingdom and Canada, and governments began to follow suit. Observing the timetable for the ban on incandescent bulbs in various countries, after 2012, most countries began to gradually ban incandescent bulbs, which brings huge business opportunities for LED lighting. The following is the timetable for eliminating incandescent lamps in various countries:

Source: Guosen Securities Research Institute

At the same time that governments encourage and promote the domestic semiconductor lighting market, semiconductor lighting technology has also been greatly developed due to the increased investment in research and development by major optoelectronic manufacturers, research and academic institutions. On the one hand, the luminous efficiency of LED chips has been rapidly improved. On the other hand, the price of LED chips has gradually decreased, and its application feasibility and economy have gradually increased. The following picture shows the price trend of high-power white LED chips for lighting:

Source: LEDinside

Compared with traditional lighting methods, the main factor affecting the popularity of semiconductor lighting is cost, especially the cost of investment. Semiconductor lighting is quite different from fluorescent lamps and incandescent lamps in outdoor lighting, landscape lighting, indoor lighting, etc. The large-scale use of LED lighting means a large amount of initial capital investment, which has brought a great obstacle to the popularization and development of semiconductor lighting to some extent. However, with the decline in the price of LED chips and LED lamps, the current investment gap between semiconductor lighting and traditional lighting is decreasing. From the perspective of long-term operational effects, semiconductor lighting has also made its advantages more obvious due to its excellent energy-saving performance. According to the LED lighting cost analysis conducted by the National Laboratory of San Diego, the total cost of semiconductor lighting will be less than that of fluorescent lamps and incandescent lamps by 2012, which is highly practical and economical.

Note: The investment cost is to allocate the cost of purchasing a bulb (per mega lumen) to the entire life cycle; the operating cost refers to the cost of a light bulb (per megawatt lumens), mainly electricity and maintenance costs; the cost of ownership is the investment cost. The sum of operating costs reflects the total cost of the lamp throughout its life cycle.

Source: CIC Securities Research Institute