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Terminal manufacturers downstream of LEDs know that brands and channels are the key to success. For midstream package companies, the brand effect is increasingly becoming the key to their market.
The market structure of the company's huge packaging industry is not clear.
This year, the LED industry is picking up, especially the outbreak of demand in the downstream application market, which will make the midstream package and upstream epitaxial chip companies that suffered from overcapacity last year have a short-lived breathing opportunity.
At the same time, the rapid development of downstream LED lighting has put forward more requirements for long-distance travel epitaxial chips and packages, with excellent performance, higher luminous efficiency and lower cost, all of which are testing the R&D and scale manufacturing capabilities of the upstream and midstream enterprises. Future market competition will focus on LED terminal lighting applications, but more importantly, it will form a response between the middle and lower reaches of the industry chain, and will quickly push the high-performance products of the upper and middle reaches to LED lighting companies and be used by consumers in the terminal market. accept.
For midstream packaging companies, this is a rare opportunity and the beginning of the market structure.
Most packaging companies are seeking other methods because of the meager profit margin of a single package business. Strengthening integration and extending the industry chain have become the response of most companies.
June 19, 2023