In the early years of LED development, due to the large number of traditional lighting companies involved in the industry, the threshold of the industry was greatly reduced, resulting in a fiercely competitive lighting market.

As a result, throughout the year 2015, the industry was in a downturn, and the price war continued to escalate, resulting in many general-purpose LED products, and the price has bottomed out.

Among them, SMD products, as the mainstream application light source on the market, have experienced a process of substantial price cuts throughout the year.

Many industry insiders said that the current SMD price has been reduced to a minimum. If the price war continues, then the company will basically have no profit.

Dr. Shao Pengrui, Technical Director of Jingtai Co., believes that prices are stabilizing in both the lighting market and the packaging market. The era of price wars in 2015 has passed, and prices may decline in 2016, but they will not be particularly noticeable.

“In 2016, the price of SMD was basically flat, and there may be a small decline, but the change is not large.” Li Yong, deputy general manager of Yitong Electronics, said.

In fact, price reduction is a market law, and changes in cost control, market demand, and supply and demand will lead to product price changes.

Although the price has dropped and then dropped, the overall market of SMD is still quite optimistic.

Relative to CSP, SMD's market size is relatively large. On the one hand, because SMD has a relatively low cost price and a certain profit margin; on the other hand, everyone has a high awareness of SMD and is widely used in the field of lighting.

Xiao Guowei, president of Jingke Electronics, believes that if the price of SMD is packaged two years ago, it may be replaced by CSP, but now SMD has fallen to such a low price, and it has no meaning to replace it. In the next two or three years, in the lighting market, CSP will not be able to replace SMD on a large scale.

Smale marketing director Zhang Luhua also said that SMD is the mainstream market, cost-effective, CSP can not replace SMD in the short term.

“Because, in most applications, SMD's advantages are more prominent and cost-effective. From the largest scale, the largest quantity, and the best cost, SMD is more popular with the public.” Shao Pengrui told Gaogong LED.

What is even more gratifying is that in the LED industry, there has been a shortage of SMD products in the packaging industry.

"More than 80% of the products on the market are SMD, and the demand is in short supply because the market itself is growing, the scale is constantly expanding, and the demand is also increasing." Zhang Luhua said.

Shao Pengrui also believes that as consumers' awareness of SMD continues to increase, SMD's penetration rate in the LED market will also increase, thus driving the market scale to expand, resulting in a supply shortage in the SMD market.

The market is large and the demand is increasing, which is no doubt an opportunity for SMD vendors. Of course, the expansion of production has become the company's primary strategic goal.

匡通电子 adopts the self-produced direct sales model, researches and develops SMD, and then directly applies to the display module.

Li Yong told Gaogong LED that “Yutong Electronic SMD production volume reached 600 KK/month. In the first quarter of 2016, sales increased by 70% compared with last year. The form is very good. It is still insisting on expansion. It is expected that the production volume will reach 700KK/ in the future. month."

SMD, as the product target that Smex has been focusing on for many years, accounts for about 70% of the overall product, and it is incumbent upon it to expand production.

“Since entering 2016, Smect has been continuously expanding production. In March, there have been 100 production lines. It is expected that there will be 100 production lines per month in June and August.” Zhang Luhua said.

Indeed, the SMD market has now become a "small red" in the Wanhua Cong, the market scale continues to expand, and many packaging companies are beginning to compete for large capacity. However, even if the market is good, manufacturers still need rational layout.

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