The price war in the LED industry is a disaster caused by government subsidies?

In the face of market vicious price competition, only by continuously developing innovative technologies can we maintain a leading edge in the market. Nichia's newly developed flip chip technology "Direct Mountable Chip" was officially mass-produced in October. In 2016, Taiwan will continue to be actively deployed. At the same time, the new Taiwanese spokesman, Watanabe, will meet with the media to show his determination to actively cultivate Taiwan.

The Direct Mountable Chip is different from the conventional LED packaging process in that it has a simple structure in which individual wafers can be directly mounted on a substrate, and has the advantages of miniaturization, high brightness, and high stability.

LED manufacturers' price-cutting competition has fallen into the "Red Sea" battlefield

In 2016, it will go to consolidation and phase out the estimated overall market with a growth rate of about 5%.

This year, the LED industry is oversupply, and Chinese companies rely on government subsidies to cut prices. All major international manufacturers have fought price wars, causing the market to fall into a comprehensive "Red Sea" battlefield. In 2016, it will gradually move toward phase-out and consolidation. . Nichia, a leader in the LED industry, has invested a lot of resources in technology development for a long time to avoid falling into unreasonable price wars. Nichia believes that even for small and medium-sized LED manufacturers, the key to the survival of enterprises is "technology" in order to survive in the future market. China and the European market will continue to be sluggish and chaotic next year, but overall, the overall market will have a slight growth of about 5%.

Nichia is actively investing in technology research and development LED new technology "direct installation of wafers" mass production in October

Actively expand the Taiwan market, the new spokesperson in Taiwan officially debut

As the LED industry matures, the business profit model and technology trends will gradually change, and the competition becomes more and more fierce. Nichia believes that technology research and development will become an important strategy to maintain its advantages under fierce competition, and to upgrade existing ones. Standardization of products, increasing the competitiveness of prices with scale benefits.

In response to the dramatic changes and development trend of the global LED industry, the new Flip-Chip LED technology "Direct Mountable Chip" developed by Nichia in March this year was mass-produced in October. Since its inception, the company has adhered to the spirit of “Ever Researching for a Brighter World”. Nichia has mastered 30% of global phosphor powder and 22% of global LED market share. Nichia said that it invests a lot of money and resources in innovative research and development every year, so it can master many important key technologies. It is expected that resources for research and development and equipment investment will be more than this year in 2016.

Nichia's automotive LED applications grew by as much as 20% in 2015. For the automotive LED market in 2016, Nichia continues to hold optimistic views. Nichia estimates that as the power saving trend will increase the LED usage rate, the LED applications of EV and FCV will continue to increase, and the LED usage ratio of DRL and headlights will also increase significantly. The automotive market and UV LED are often seen as the blue ocean market for the future LED industry. Nichia believes that the Laser Diode market is worthy of attention. At present, Nichia has successfully cut into the LD projector market and actively applied the high-end technology of LD in the LED field. This move further strengthens the competitiveness of Nichia's products and continuously responds to customer needs with high standards.

In 1988, Nichia established "Taiwan Nichia Co., Ltd." in Taiwan. It has entered its 27th year. In addition to establishing close cooperative relations with many Taiwanese manufacturers, Nichia also attaches importance to exchanges with Taiwanese media in November. On the 25th, the new Taiwanese spokesman, Watanabe, was officially introduced to the Taiwanese media. Watanabe entered Taiwan's Nichia, initially selling Laser Diode and also engaged in LED and other related businesses. The role of the spokesperson will be a new challenge. Watanabe said that he is very happy to take over this responsibility and hopes to understand it. The language conveys the ideas and principles of Nichia to the public and establishes a good communication channel with the outside world.

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