[Text / Long Zonghui] Recently, US Nasdaq-listed company ON Semiconductor held a press conference in Guangzhou, announcing that in addition to automotive LED, mobile devices and LCD backlight applications, the company also expanded the field of LED general lighting, and Release its targeted LED driver products and solutions. How to improve product cost performance has become the key to its market development.
“When the price of LED bulbs is less than $10, there will be a turning point in the lighting market, and this time is likely to be in 2014, as Cree has released 60W LED bulbs in the US last year for $16/ Thousands of lumens, the price is 12.97 US dollars, is very close to the critical point." Wu Zhimin, director of application engineering of ON Semiconductor China, said this when he talked about the reasons for choosing the current LED general lighting market.
Wu Zhimin believes that the LED general lighting market will grow in a curve in the future. Before 2013, the market was in the introduction stage. The competition of manufacturers will be placed on performance. At this time, the cost of LED general lighting is still high, the market is relatively scattered, and many new entrants.
2014-2016 is the second stage. At this time, the market enters a stage of rapid development. The foothold of competition will become competition of cost and scale. The market will develop rapidly and begin to integrate.
After the third stage after 2016, the market will mature, the competition will be placed on the competition of quality and breadth, the market usage will soar, the application field will be broader, and the industry's profit growth will slow down.
"One-fifth of the world's electricity consumption is consumed in lighting. If LED lighting is used, at least 30% of lighting power can be saved." Wu Zhimin said that many countries in the world have announced the timetable for disabling incandescent lamps. Many international manufacturers have begun to transform, such as GE. In 2011, the last incandescent lamp production plant was closed. IKEA will also start selling only LED lighting products in 2016.
Zhang Hongbiao, research director of the High-tech LED Industry Research Institute (GLII), said that the penetration rate of LED general-purpose lighting in China in 2013 was about 20%, and it is expected to reach 30% in 2014. In 2013, the global LED general-purpose lighting output penetration rate was about 17%, and it is expected to exceed 25% in 2014.
Last year, many international lighting manufacturers accounted for a large increase in LED revenue, such as Philips Lighting's 30% and OSRAM's 29%. Obviously, ON Semiconductor has also seen this huge market and is participating in it.
"We have a wealth of experience and technology in the power supply, transferred to LED, there is no problem in product development, such as the high-pressure 700V proprietary process we have long been." Wu Zhimin said.
ON Semiconductor was spun off from Motorola in 1999 and listed independently in 2000. According to the 2013 terminal market revenue, the proportion of automobiles, industrial/military/aviation/medical, consumer products, communications, and computers is 27%, 20%, 19%, 18%, and 16%, respectively. Many of these businesses have already entered the market. LEDs, such as automotive lighting, have solutions specifically for LED lights. LED backlights for LCD TVs also have a high market share, and many street lamp power companies in China are using ON Semiconductor's driver ICs.
In Guangzhou, ON Semiconductor has launched a number of new products with considerable technical content, such as the NCL30085, which will be launched in the third quarter. This product adds user-programmable overheating and anti-going function with external NTC, which can be reduced by up to half. The current, the bulb heat is significantly reduced. Designed for dimming, it has a 3-step dimming design. The step-by-step dimming function is embedded in the IC. The standard wall switch can be used for three operations to achieve the previous 70%, 25%, and 5% brightness. Due to the wide power supply range, one product is designed to meet different power requirements. At the end of the year, ON Semiconductor will also launch a line of wireless communications that support Zigbee. And ON Semiconductor's 99% advantage in PFC has been retained in new products.
"The use of ON Semiconductor's driver chip for streetlight power supply is stable. Although the price is high, we can still accept it as long as the price/performance ratio is right," said a general manager of street light power. However, if such a high price is used for general lighting, it is certainly not as cost-effective as a domestic IC factory.
The reporter visited a number of domestic LED lighting companies, most of which were mixed with international companies such as ON Semiconductor. Some manufacturers believe that the technical level of ON Semiconductor is not comparable to that of Texas Instruments, although the price is not as high as that of Texas Instruments.
This has formed a top brand may not choose ON Semiconductor, and low-end customers abandoned because of price reasons, leading to the large-scale breakthrough in the sales of ON Semiconductor's LED driver products in recent years.
According to the earnings report released by ON Semiconductor, the company achieved revenue of 2.783 billion US dollars in 2013, gross profit margin of about 35%, and Texas Instruments' gross profit remained at around 50%.
This year, the entire driver IC market continued the situation in the second half of last year. “In the first half of last year, both domestic and foreign markets were very prosperous.†Dr. Yi Yangbo, deputy general of Wuxi Xinpeng Microelectronics Co., Ltd., said that the domestic market is relatively flat in the second half of the year, but for lighting companies in foreign markets, such as Xiamen. Lighting business performance is still very good. Overseas markets such as Europe and the United States have been very standardized. Certification takes a certain amount of time, but orders for exports are relatively stable. Exports in the second half of the year are better than those in the first half of the year. The market characteristics of ICs mounted on LED lamps and power supplies are also the same.
Currently, IC drivers for general illumination can be roughly classified into two categories: dimming and non-dimming. The market share of domestic ICs for the low-end consumer market in the non-dimming field is expected to reach 70%, even if the market share of domestic ICs for exporting lamps is at least 60%, including a considerable part of the export destinations for Southeast Asia and Africa. Price sensitive to export places where quality is not very important. For domestic sales of lamps, the domestic IC market share can even reach 90%.
ON Semiconductor may be able to catch up with the large-scale phase of the LED general lighting market, but how to improve the price/performance ratio and launch more suitable products for the market has become a top priority for them.
"Ansemite has its own factory, and the cost we have been optimizing. The lighting market is very large, there are many market segments and applications, and we continue to improve the cost performance of the products we serve." Wu Zhimin said.
“When the price of LED bulbs is less than $10, there will be a turning point in the lighting market, and this time is likely to be in 2014, as Cree has released 60W LED bulbs in the US last year for $16/ Thousands of lumens, the price is 12.97 US dollars, is very close to the critical point." Wu Zhimin, director of application engineering of ON Semiconductor China, said this when he talked about the reasons for choosing the current LED general lighting market.
Wu Zhimin believes that the LED general lighting market will grow in a curve in the future. Before 2013, the market was in the introduction stage. The competition of manufacturers will be placed on performance. At this time, the cost of LED general lighting is still high, the market is relatively scattered, and many new entrants.
2014-2016 is the second stage. At this time, the market enters a stage of rapid development. The foothold of competition will become competition of cost and scale. The market will develop rapidly and begin to integrate.
After the third stage after 2016, the market will mature, the competition will be placed on the competition of quality and breadth, the market usage will soar, the application field will be broader, and the industry's profit growth will slow down.
"One-fifth of the world's electricity consumption is consumed in lighting. If LED lighting is used, at least 30% of lighting power can be saved." Wu Zhimin said that many countries in the world have announced the timetable for disabling incandescent lamps. Many international manufacturers have begun to transform, such as GE. In 2011, the last incandescent lamp production plant was closed. IKEA will also start selling only LED lighting products in 2016.
Zhang Hongbiao, research director of the High-tech LED Industry Research Institute (GLII), said that the penetration rate of LED general-purpose lighting in China in 2013 was about 20%, and it is expected to reach 30% in 2014. In 2013, the global LED general-purpose lighting output penetration rate was about 17%, and it is expected to exceed 25% in 2014.
Last year, many international lighting manufacturers accounted for a large increase in LED revenue, such as Philips Lighting's 30% and OSRAM's 29%. Obviously, ON Semiconductor has also seen this huge market and is participating in it.
"We have a wealth of experience and technology in the power supply, transferred to LED, there is no problem in product development, such as the high-pressure 700V proprietary process we have long been." Wu Zhimin said.
ON Semiconductor was spun off from Motorola in 1999 and listed independently in 2000. According to the 2013 terminal market revenue, the proportion of automobiles, industrial/military/aviation/medical, consumer products, communications, and computers is 27%, 20%, 19%, 18%, and 16%, respectively. Many of these businesses have already entered the market. LEDs, such as automotive lighting, have solutions specifically for LED lights. LED backlights for LCD TVs also have a high market share, and many street lamp power companies in China are using ON Semiconductor's driver ICs.
In Guangzhou, ON Semiconductor has launched a number of new products with considerable technical content, such as the NCL30085, which will be launched in the third quarter. This product adds user-programmable overheating and anti-going function with external NTC, which can be reduced by up to half. The current, the bulb heat is significantly reduced. Designed for dimming, it has a 3-step dimming design. The step-by-step dimming function is embedded in the IC. The standard wall switch can be used for three operations to achieve the previous 70%, 25%, and 5% brightness. Due to the wide power supply range, one product is designed to meet different power requirements. At the end of the year, ON Semiconductor will also launch a line of wireless communications that support Zigbee. And ON Semiconductor's 99% advantage in PFC has been retained in new products.
"The use of ON Semiconductor's driver chip for streetlight power supply is stable. Although the price is high, we can still accept it as long as the price/performance ratio is right," said a general manager of street light power. However, if such a high price is used for general lighting, it is certainly not as cost-effective as a domestic IC factory.
The reporter visited a number of domestic LED lighting companies, most of which were mixed with international companies such as ON Semiconductor. Some manufacturers believe that the technical level of ON Semiconductor is not comparable to that of Texas Instruments, although the price is not as high as that of Texas Instruments.
This has formed a top brand may not choose ON Semiconductor, and low-end customers abandoned because of price reasons, leading to the large-scale breakthrough in the sales of ON Semiconductor's LED driver products in recent years.
According to the earnings report released by ON Semiconductor, the company achieved revenue of 2.783 billion US dollars in 2013, gross profit margin of about 35%, and Texas Instruments' gross profit remained at around 50%.
This year, the entire driver IC market continued the situation in the second half of last year. “In the first half of last year, both domestic and foreign markets were very prosperous.†Dr. Yi Yangbo, deputy general of Wuxi Xinpeng Microelectronics Co., Ltd., said that the domestic market is relatively flat in the second half of the year, but for lighting companies in foreign markets, such as Xiamen. Lighting business performance is still very good. Overseas markets such as Europe and the United States have been very standardized. Certification takes a certain amount of time, but orders for exports are relatively stable. Exports in the second half of the year are better than those in the first half of the year. The market characteristics of ICs mounted on LED lamps and power supplies are also the same.
Currently, IC drivers for general illumination can be roughly classified into two categories: dimming and non-dimming. The market share of domestic ICs for the low-end consumer market in the non-dimming field is expected to reach 70%, even if the market share of domestic ICs for exporting lamps is at least 60%, including a considerable part of the export destinations for Southeast Asia and Africa. Price sensitive to export places where quality is not very important. For domestic sales of lamps, the domestic IC market share can even reach 90%.
ON Semiconductor may be able to catch up with the large-scale phase of the LED general lighting market, but how to improve the price/performance ratio and launch more suitable products for the market has become a top priority for them.
"Ansemite has its own factory, and the cost we have been optimizing. The lighting market is very large, there are many market segments and applications, and we continue to improve the cost performance of the products we serve." Wu Zhimin said.
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