Since the beginning of this year, the transition of the company has taken the lead in abandoning the non-growth orders. After the Dongbei hacking LED bulb production capacity of 70%, the new century will close the LED bulbs and LED tube production lines in October, and abandon the low-end lighting market. The product line that dragged the gross profit margin into history has helped to improve the quality of the LED factory. Since the beginning of this year, the transition of the company has taken the lead in abandoning the non-growth orders. After the Dongbei hacking LED bulb production capacity of 70%, the new century will close the LED bulbs and LED tube production lines in October, and abandon the low-end lighting market. The product line that dragged the gross profit margin into history has helped to improve the quality of the LED factory. The new century is the LED chip factory, recognizing that the price war of low-end lighting is difficult to resist, and the price is only falling, it is difficult to compete with mainland manufacturers. Since this year, the proportion of low-end lighting has been cut, and the proportion of revenue has dropped sharply, but The reduction of operations is not enough. The new century said that since October this year, it has completely withdrawn from low-end LED lighting, including LED bulbs and LED tubes. In the future, it will focus more on high-end CSP (Chip scale Package) and FC (Flip). Chip) and other high-end products. The new century also continues to review the product line and actively adjust to a better product mix. As traditional TV backlights face the same problem, the new century considers traditional TV backlights as the next product line to reduce operations. Apple introduced the CSP process into the mobile phone flash. It is expected that the high-end mobile phone reference CSP LED chip will become the mainstream, so the new century continues to be optimistic about CSP, FC and other high-end LED applications, but unlike the crystal power storm TV backlight, the new century LED car Lights and mobile phone flashes are the mainstays. LED lights enter the mainland car factory through group electricity and enter the Design in stage. It is expected that the higher the proportion of future operations, the better. The industry judges that under the same size of wafer base, the output value created by CSP and FC process is 2 to 3 times that of traditional LED chips, and the packaging cost is low. The overall price is low. Even the low-priced TV has the trend of adopting CSP. In addition, Apple's lead in the introduction of high-end mobile phone flash, in the past Apple's past role as a model role, LED chip factory's optimistic about CSP. Since the beginning of this year, every LED factory in Taiwan has undergone a major transformation, including the company’s taking the lead in abandoning low-margin orders, not sprinting revenues, not rushing to expand MOCVD machines, and in addition to the capital expenditures, One of the options, in addition to the new century, LED packaging giant Dongbei also cut the LED bulb production capacity, from 10 million per month, to the fourth quarter to 3 million per month, LED bulb revenue share next year In the first quarter, it fell to 10%, much lower than 20% in the fourth quarter of this year. The LED light source product revenue ratio was significantly reduced, which helped to boost the lighting gross margin by 10% next year.
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