The development of auxiliary materials companies, including encapsulated silica gel, is under pressure from both sides. On the one hand, packaging companies continue to cut prices, and on the other hand, they are facing pressures such as upgrading of technology products and rising labor costs.
In the past 2015, the LED market has changed from the previous high-speed growth trend. Although the market size has continued to grow, the profitability of the company has been sluggish. The increase in profits has become a "magic" that many companies cannot hide. Especially in the field of midstream packaging.
According to the survey statistics of the High-tech Research Institute LED Research Institute (GGII), the price of China's LED mainstream packaged devices in the whole year of 2015 was down by 50%. In the fierce competition and pressure from the continued expansion of large factories, in 2015, more than one-fifth of the packaging plants opt out or quit in disguise.
As an important auxiliary material for LED packaging, glue and other materials occupy a significant proportion of the cost of packaging. In order to reduce the cost of LED industry chain, packaging companies will use glue and other accessories as the main way to reduce costs. Packaging materials companies are facing shrinking profit margins and surviving. It is getting harder.
“The overall glue market situation was relatively sluggish last year, and the sales volume increased but the price drop was highlighted.†Chen Yongsheng, general manager of Jieguo New Materials, told Gaogong LED that there is no room for price reduction for ordinary LED glue. It can still be 10% -20 years ago. The % range has a certain decline, but now the price has basically bottomed out, and the glue company has no profit margin.
According to GGII statistics, in 2015, the sales volume of China's LED packaged silica gel reached 1,500 tons, a year-on-year increase of 21.4%, and the output value was about 1.12 billion yuan, down 3.4% year-on-year. The price of glue fell by more than 20% throughout the year.
From the perspective of the packaging company, with the continued expansion of the packaging giants, the price of the device has fallen, and most of the packaging companies have also mentioned the highest point in cost control, for the accessories companies including glue. Price cuts are also growing stronger.
According to the person in charge of the packaging company, the price reduction requirements for packaging devices continued to exist in downstream lighting companies in 2016. It also indicates that in addition to internal excavation, the packaging factory must cut the cost of materials, and the price of ordinary packaging silicone is inevitable.
In the face of impact, glue companies are looking for new profit growth points, and it is imperative to transfer to high-margin products. Many glue companies have begun to tighten their layout in the fields of filament lamp glue and UV packaging glue.
“The company and Osram are cooperating to develop high-definition products that are resistant to UV and gas corrosion. In addition, the rise of plant lighting will also bring new directions to silicone companies.†Li Benjie, general manager of Lianlang New Materials, said that UV packaging is glued. The high temperature resistance and viscosity have high requirements, while the plant lighting has higher requirements on the moisture resistance and thermal shock resistance of the glue.
Jieguo new materials also began to bear fruit in the subdivisions of filament glue and optocoupler protection silicone.
Since the beginning of 2013, Jieguo New Materials has been laying out LED filament glue, and new products are constantly coming out. In 2013, Jieguo Electronics produced 6042 series 360-degree LED filament silica gel, which was widely received by the market. In the second half of 2014, the company's 6042 upgraded version of 6048AB series 360-degree filament silica gel was introduced and successfully entered the high-tech LED Golden Globe Award; 2015 The company once again launched the new LED filament adhesive 6020-14, and gained a good market response.
At the end of 2015, Jieguo launched a new innovative product - optocoupler protection silicone 5960, in order to lay out new markets.
In addition to providing solutions for SMD, COB and filament for LED packaging, Huigu Chemical also keeps up with the market frontier and introduces a variety of adhesives for matching new technologies, such as fluorescent film for CSP and UV curing encapsulant. Can meet the different needs of customers.
Commet has also launched a number of new products in 2015. For example, high-hardness LED-modified silicone (Hybrid), LED epoxy encapsulation materials, and the like. High-hardness LED-modified silicone resin (Hybrid) has good toughness and gel-resistance, and has good adhesion to substrates, such as metals, plastics, and ceramics, which are commonly used in packaging. The LED epoxy packaging materials are mainly used in indoor and outdoor RGB displays and white light packages. "This series of materials has excellent light transmission in the wavelength range of LED light emission, and can also protect the chip in a humid heat environment and block environmental pollution." Ge Shili, general manager of Kangmet.
In addition, for the silicone products used in UV and CSP, Commet is also actively researching and developing. According to Ge Shili, it will also be launched soon.
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