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  • Nichia: LED Market Conditions Are Fiercely Competitive, Highly Differentiated Technology Products Become Profit Kinetic Energy
    Jul 02, 2018

    More than halfway through 2018, looking forward to the LED market conditions this year, the market demand in the first two quarters of 2018 is not strong, and the traditional LED backlight market also has overcapacity, which makes many people worry about the industry prospects. Nichia Chemical Co., Ltd., a global LED leader, came to Taiwan today (6/29) to conduct media dinners and share future operational priorities. Although the overall industry outlook is still worrying, Nichia will adhere to the spirit of enterprise and innovative technology. For weapons, develop differentiated products with high technology to seize market opportunities and stand firm in the industry.

    Dai Zhenjia, general manager of Taiwan Nichia Chemical Co., Ltd. also believes that "high-tech differentiated products such as LD, automotive, and new panel technology "FULL ACTIVE" will be the key to driving revenue in the future. In the current situation, the ability to create profits is very limited. Nichia has developed traditional products and frameworks to develop new products, especially optimistic about agricultural use and ultra-high color rendering white LEDs. Nichia has been investing a lot of effort in research and development. The innovative spirit of the company is also awarded the 2017 Top 100 Global Innovators. In the future, it will continue to invest more resources in research and development, technological innovation, and be more focused on patent intellectual protection, creating market-leading high-tech products. "

    Responding to the diversified needs of customers, Japan has established a new company in South China to provide a comprehensive solution for vertical integration.

    Nichia's powerful intellectual property rights strategy actively exercises various patent protections

    In response to the diversified needs of customers, Nichia has designed and developed LED products that are easy for customers to use, and maintains a smooth communication channel with customers. Recently, Nichia has jointly established a new company, "Guangxin Vision Technology Co., Ltd." in South China. To provide a comprehensive solution for vertical integration. The core business includes print assembly, optical lens development and design, IC design and integration of other related modules. Nichia also hopes that the establishment of optical core will accelerate the pace of design and development, develop the industry's most advanced products, and become an important presence guiding the LED industry.

    In response to various rumors after the expiration of the YAG patent term, Nichia also stated that in addition to the YAG patent, Nichia also owns the basic patents related to PSS (Patterned Sapphire Substrate), and the LEDPKG structure used in Japan and Texas lawsuits. Patent, patents related to LED wafer electrode construction used in North Carolina lawsuits, and many other powerful patents. In addition, phosphors for LEDs other than YAG, such as nitride phosphors, are also actively researched and developed, and related patents are still in the possession. Patent protection will continue to be actively and actively implemented in the future.

    In the second half of 2018, the LED industry is highly competitive. Highly differentiated technology products become the profit dynamism of enterprises.

    Attack EV battery materials and expand LD revenues. Combined revenues in 2020 will increase to 500 billion yen.

    The LED industry has been oversupplied by the red tide of the lunar industry a few years ago, resulting in oversupply in the LED industry. In addition, LCD backlights and market conditions are still in the doldrums. The mainland LED packaging factory released the expansion plan to compete in the market with low-priced products. In the face of increasingly fierce industrial conditions, in recent years, Taiwan's LED manufacturers have adjusted their order types, mostly in the direction of basic, small-quantity, high-tech threshold market, in the hope of attacking the blue ocean market to bring profits to enterprises.

    Looking forward to the second half of 2018, Nichia believes that the situation of excessive competition will not slow down. As the price of LED chips and packaging has been reduced for several years, the elimination of small and medium-sized manufacturers and the consolidation of enterprises will continue in the future. In order to avoid being involved in the price war, companies must be committed to research and development, providing highly differentiated technology products in order to meet the price war threat.

    From the perspective of the entire LED industry, 2018 is still a severe year. However, Nichia has been actively investing in research and development and equipment investment since June. In June 2017, it announced that it plans to invest about 22 billion yen before the end of 2020, and build a new plant in the current four-nation Annan headquarters factory. The LD, which is used in projector light sources, endoscopes, and automotive headlights, is expected to be completed on January 30, 2019. The goal is to increase LD production to more than twice the current level by 2020.

    In the operating plan announced this year, Nichia will increase the sales of lithium-ion battery materials for electric vehicles (EV), expand the market share of LEDs for vehicles in China and Europe, and the laser diodes used in projectors. (LD, Laser Diode) sales increase, the goal is to increase the combined revenue to 500 billion yen in 2020. Despite the tough industrial market conditions, Nichia expects its combined revenue in 2018 to increase by 21% to 420 billion yen and the combined net profit forecast to 50 billion yen. The investment in equipment is expected to increase by 40% to 77 billion yen. In the face of price wars, Nichia will continue to maintain high-interest rates of 2 digits (10% or more) with innovative and highly differentiated technology products.

    Car, LD and new panel technology "FULL ACTIVE" will drive LED revenue

    White light LED "Optisolis" for special and super high color rendering for agriculture. Breaking away from traditional applications. Cutting into special markets.

    In response to the weakness of the traditional LED and backlight market in recent years, the transformation results of various factories in 2017 gradually showed up, but in the fiercely competitive market environment, in addition to the layout of niche markets, the car and special markets are also the new blue oceans that companies are eager to try.

    Compared with many manufacturers in recent years, in order to avoid price competition and try to transfer to the automotive market, Nichia launched the world's first LED products for headlights in 2007. It has many deep experience in the automotive market, has many experiences and achievements, and is also well received by manufacturers. Trust in the product. In 2018, Nichia will also maintain its products in the automotive market, especially high-tech headlights, such as Adaptive Driving beam LEDs, or LEDs that are gradually emerging in the market for Daytime Running Light. , as well as laser headlights with higher performance, etc., are the focus areas that Nichia will pay attention to in the future. In addition, LD is also the key to Japan's future revenue. Nichia has also launched the "LD 500 Project", which aims to increase LD revenue to 50 billion yen in 2020, which is more than 60% more than in 2017.

    Although the development of the traditional LED and backlight market has slowed down, after the release of the blue LED in 1993, Nichia has pursued high-tech power as an indicator to break away from the traditional product thinking and focus on special markets, such as the special use of agricultural plants in recent years. Whether it is future market development prospects or social contribution, it has extremely high value. The Nichia Shanghai plant also has a laboratory for the development of LED artificial light sources for various plants, and hopes to bring more beneficial growth in agricultural plant applications in the future.

    In February of this year, Nichia also officially released the white LED "Optisolis" with super high color rendering. Its spectrum is the most suitable for the standard light source. It is the artificial light source most similar to natural light. It is known as the "white LED" recognized by the world. A new prelude has been opened. Nichia introduced the mass production technology of blue LEDs in 1993, and further developed white LEDs in 1996, leading the global "light source revolution."

    Optisolis uses Nichia's blue LED chips and phosphor technology to improve the "light quality" of white LEDs in the past, with good luminous efficiency and closer to the natural light spectrum, which can be more faithfully presented with super high color rendering. Compared with other UV-containing LED light sources, Optisisos can greatly reduce the degradation of the material being sprayed and reduce the damage to the projectile. It is expected that museums and art galleries with high color requirements, or "color assessment" or "commercial" that require super high color rendering are extremely suitable.

    Strong power, corporate strategy, innovative development technology, and intellectual protection. Japan's four wars are recognized.

    Awarded by the Minister of Economy, Trade and Industry of 2017 Top 100 Global Innovators and Japan's Intellectual Property Awards

    As a leading company in the global LED industry, Nichia has been continuously pursuing the spirit of "Ever Researching for a Brighter World" for 60 years, specifically "Japan's four wars" - made in Japan The strong creativity of the industry, the strategic planning of the company as a whole, the strong research and development technology, and the intellectual property protection strategy linked to the business strategy and technical strength are the results, and are recognized by the world and Japan. This year, the company was awarded the "2017 Top 100 Global Innovators" and the "Heisei 30 Annual Intellectual Property Awards of the Minister of Economy, Trade and Industry" in Japan. These two awards also affirmed Nichia's advanced technology development capabilities and intellectual property protection strategies. In the future, Japan and Asia will continue to make efforts to contribute to the society and enhance the value of Japanese and Japanese companies, and practice the spirit of the enterprise with the industry leader to self-expect.