Taiwan LED factory highly integrated to ensure profit

In the first half of this year, the demand for LED lighting has grown stronger than in the same period in the past few years, and the market is more optimistic that demand will continue to increase in the second half of the year, but even if the demand increases significantly, as the price of products continues to decline, each Households are still faced with difficulties in profitability. As a result, various product lines have begun to develop in a highly integrated manner. In addition to expanding the scope of services, they also ensure gross profit and profitability performance. Among them, Ai Di-Sen expands the LDMS business model, while the international giant Philips Develop higher-order lighting solutions.

With the declining prices of LED lighting products, although LED companies have rushed to increase revenues through sales volume expansion, it is still difficult to maintain gross profit and profitability performance. Therefore, the industry faced this dilemma and developed thinking in the LED lighting market. There has been a change, that is, from the method of raising gross profit by increasing the volume of shipments and reducing the cost of the economy to the method of seeking profitability through organizational integration.

Bai Jiansheng, general manager of Philips Group in Taiwan, said that in the face of rapidly increasing penetration rate of LED lighting products, even if the international giant Philips faces profitable challenges, the company will position itself as a lighting system solution provider. Restrict itself to only LED lighting product manufacturers.

Bai Jiansheng pointed out that in addition to providing good lighting products, the lighting system solution requires a high degree of design capability and can find the best lighting solution for different environments and needs. Therefore, the lighting system solution has a large market demand. Including commercial lighting, home lighting, outdoor lighting, public lighting and other fields, and the company through the business to differentiate with the market LED lighting industry, the current Philips solution and a single light source product revenue ratio of about 3:1, After the company's role transformation, LED lighting business has maintained a stable performance in the past few years.

Actually, the LDMS (Lighting Design Manufacturing Service) operating mode of the Taiwan plant is also part of the lighting integration service. It provides integrated applications for lighting products in the areas of heat treatment, circuit setting, mechanism design, and optical simulation. The short-term goal is to rush this business revenue share to 40%. However, Edison said that the company's operations this year focus on large production capacity, mainly locked in the PLCC product line, but the LDMS model is still regarded as the company's long-term development of the LDMS model.