Market Development Trend of LED Strips

　　In recent years, the annual growth rate of the global LED energy-saving industry has remained above 20%. According to relevant statistics, the global LED lighting market is expected to reach 75 billion US dollars in 2020, accounting for 50% of the global lighting market share.

　　Based on the contents of relevant documents such as "State Council's Decision on Accelerating the Cultivation and Development of Strategic Emerging Industries", "12th Five-Year Plan for Energy Conservation and Emission Reduction", "12th Five-Year Plan for the Development of Energy Conservation and Environmental Protection Industry", and "Opinions on the Development of Semiconductor Lighting Energy-Saving Industry", the government has formulated a development plan for the semiconductor lighting energy-saving industry. This plan proposes that by 2015, the average annual growth rate of the LED lighting industry output value should reach about 30%, all incandescent lamps above 60W for general lighting should be eliminated, their market share should be reduced to below 10%, the market share of traditional energy-efficient lighting products such as energy-saving lamps should be stable at around 70%, the market share of LED functional lighting products should reach more than 20%, with an output value of 450 billion RMB (including 180 billion RMB for LED lighting application products), and the domestication rate of LED chips should be above 80%.

　　China is gradually increasing financial subsidies to promote the popularization of LED lighting products. In the fields of commercial lighting, industrial lighting, government offices, and public lighting, it promotes the demonstration application of LED products in medical, agricultural, stage, and landscape lighting and other professional and special places, orderly promotes the implementation of the "Ten Cities and Ten Thousand Lamps" semiconductor lighting application demonstration project, focuses on the demonstration application of LED tunnel lights, street lights and other products and systems, and actively carries out the creation of green lighting demonstration cities. While focusing on the application and promotion of LED downlights, spotlights and other lighting products, it will enter the home lighting field in a timely manner. Supported by the national policy of prioritizing the development of energy-saving and environmental protection industries, the market demand for LED strips is gradually increasing, and the future growth trend is prominent.

Industry competition will become increasingly fierce

　　In the past nearly ten years, China's LED lighting industry has shown explosive development, with a growth rate consistently above 30%. Due to the broad market prospects and relatively low market entry barriers, competition is becoming increasingly fierce.

　　According to data released by the China Industry Information Network, in 2015, there were more than 20,000 enterprises participating in the market competition in the LED lighting industry, with domestic lighting industry sales reaching 560 billion yuan, a year-on-year increase of 8%, and the market growth rate fell to a single digit for the first time. Due to the excessive number of enterprises and overcapacity in the lighting industry, there is a surplus of supply over demand. To cope with fierce market competition, domestic enterprises mainly expand production scale to reduce production costs and lower the prices of LED lighting products.

　　Last year, due to the sluggish world economy and China's economic downturn, the growth rate of LED lighting market demand slowed down. Coupled with some LED manufacturers seizing subsidy policies to further release production capacity, the problem of overcapacity has worsened. International giants launched low-price wars for LED bulbs, and leading enterprises followed suit, with most enterprises trapped in a predicament of "increased revenue but not increased profit".

　　In 2015, the global LED output value showed negative growth for the first time, with a decline of -3%, mainly due to oversupply in the industry, leading to a sharp drop in LED prices. First, looking at the chip part, the price drop is about 40%-50%,

　　Some even reached 60%. In the packaging component part, the price drop is different. Many manufacturers have entered the mobile field and mobile phone backlight field, and the price drop is relatively large; the lighting application part is also a severely affected area.

　　From the growth trend of each link in the first half of 2016, the upstream and midstream have slowed down compared with last year due to fierce market competition. In the first quarter, the export value of lighting products was 8.5 billion US dollars, down 14.8% year-on-year, and the situation is severe.

Yitong launches a dedicated chip mounter for flexible LED strips to improve mounting efficiency and reduce mounting costs.

　　Due to the increasingly severe price competition in the LED market, Shenzhen Yitong Automation Equipment Co., Ltd. has launched a new generation of high-speed LED flexible strip chip mounter - HT-F7.

　　The price war in the LED industry is fierce, and many companies are in a state of unprofitable or even loss-making operations in order to seize market share. This is not a healthy development for a company, so companies need to carefully calculate and reduce production costs to make profits, and the HT-F7 high-speed chip mounter for flexible LED strips was born under this premise.

Product Features:

Can mount 2-4 materials simultaneously

Mounting speed is not affected by the proportion of materials such as LED beads and resistors

Capacity up to 170,000 CPH

How does Yitong HT-F7 chip mounter reduce production costs?

　　The HT-F7 has a capacity of up to 170,000 points, equivalent to four other brands of chip mounters. If a company originally had four other brands of chip mounters, it now only needs one HT-F7.

1. Machine operating cost

　　The H-F7 has a power of 5KW, consuming 5 degrees of electricity per hour of operation. Assuming that one degree of electricity costs 1.5 yuan, and the machine operates for 8 hours a day, then the electricity cost of HT-F7 for one year is 5*1.5*8*365=21900 yuan. Most chip mounters on the market have a power of 10KW~15KW. We assume it is 10KW, then the annual electricity cost of four other brands of chip mounters is 10*1.5*8*365*4=175200 yuan. Therefore, in terms of electricity cost, Yitong HT-F7 can save the company 175200-21900=153300 yuan per year.

2. Labor cost

　　If one chip mounter requires two operators, with a salary of 3500, then the labor cost of HT-F7 is 3500*12*2=84000 yuan/year, while the labor cost of four other brands of chip mounters is 3500*12*8=336000 yuan/year. Therefore, in terms of labor cost, Yitong HT-F7 can save the company 336000-84000=252000 yuan per year.

3. Machine maintenance cost

　　All Yitong machines enjoy one-year warranty service, so the maintenance cost in the first year is 0. Assuming that the monthly maintenance cost of a chip mounter is 1000 yuan, the annual maintenance cost of Yitong HT-F7 is 1000*12=12000 yuan, then the annual maintenance cost of other brands of chip mounters is 1000*4*12=48000 yuan. Therefore, in terms of machine maintenance cost, in the first year, Yitong HT-F7 can save the company 48000-0=48000 yuan, and will save the company 48000-12000=36000 yuan each year thereafter.

　　In summary, one Yitong machine can save the company 153300+252000+36000=441300 yuan in cost per year, and this 440,000 yuan can be used to develop the company and expand its business. Therefore, in the general environment where price wars are being waged among various companies, choosing Yitong HT-F7 can better save costs for the company, enhance the company's competitiveness in terms of price, and better enable the company to seize market share.