In order to help accelerate the development of the LED industry, Chinese manufacturers are investing more in product development and related activities. The average investment level will account for about 5% of operating revenue. Most suppliers are stepping up production to meet growing domestic demand overseas. It is expected that manufacturers will invest in increasing production capacity. Guangdong Province may issue large orders for 1,500km LED street lighting projects covering Dongguan, Foshan, Guangzhou and Shantou.
Some R&D plans are designed to deal with the expiration of several patented LED technologies. Exposing these solutions will allow manufacturers to develop new lighting concepts and increase competition in the market. For example, in 2008, Chinese companies applied for nearly 26,000 patents, most of which belong to LED packaging technology and applications.
For diode-based products and other light sources, raising energy-saving levels and reducing costs will be the focus of research and development. The emphasis will also be placed on improving durability and product life.
At present, the life of LED bulbs is usually around 10,000 hours, but some designs are above this average. At the same time, the lifetime of most CFLs is longer than 5,000 hours. More than 8,000 or even 10,000 hours of products are also available.
Prices depend on power, size, materials of manufacture, and technology used. Most of the raw materials are purchased from domestic companies, but some are also purchased overseas as needed. For example, ABS is usually imported from South Korea. Several thermoplastics produced in Taiwan can also be used.
LED product manufacturers usually purchase diodes and chips, the latter mainly from the United States or Taiwan. Other lighting solutions are usually purchased from well-known companies such as Cree, Philips, Osram and Nichia.
The cost of most raw materials is expected to remain stable in the coming months. As the major packaging technology patents will expire within the year, it is expected that the price of LED chips will fall by 5-10%. The expiration of a patent may reduce the license fee and keep the price stable for the next six months.
LED-based products are expected to increase penetration in the residential and non-domestic sectors. As technology advances reduce costs and prices, the market will speed up the acceptance of these products.
Some R&D plans are designed to deal with the expiration of several patented LED technologies. Exposing these solutions will allow manufacturers to develop new lighting concepts and increase competition in the market. For example, in 2008, Chinese companies applied for nearly 26,000 patents, most of which belong to LED packaging technology and applications.
For diode-based products and other light sources, raising energy-saving levels and reducing costs will be the focus of research and development. The emphasis will also be placed on improving durability and product life.
At present, the life of LED bulbs is usually around 10,000 hours, but some designs are above this average. At the same time, the lifetime of most CFLs is longer than 5,000 hours. More than 8,000 or even 10,000 hours of products are also available.
Prices depend on power, size, materials of manufacture, and technology used. Most of the raw materials are purchased from domestic companies, but some are also purchased overseas as needed. For example, ABS is usually imported from South Korea. Several thermoplastics produced in Taiwan can also be used.
LED product manufacturers usually purchase diodes and chips, the latter mainly from the United States or Taiwan. Other lighting solutions are usually purchased from well-known companies such as Cree, Philips, Osram and Nichia.
The cost of most raw materials is expected to remain stable in the coming months. As the major packaging technology patents will expire within the year, it is expected that the price of LED chips will fall by 5-10%. The expiration of a patent may reduce the license fee and keep the price stable for the next six months.
LED-based products are expected to increase penetration in the residential and non-domestic sectors. As technology advances reduce costs and prices, the market will speed up the acceptance of these products.
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