“The organizer gave a proposition essay: “Scale Expansion and Intelligent Lighting.†I want to talk about some of my ideas from the perspective of integrated circuits (driver ICs).†On the morning of January 5th, the 2016 Gaogong LED Annual Meeting was At the opening ceremony of the name of Jingyuan Optoelectronics, Li Zhaohua, the general manager of Mingwei Electronics, as the representative of the LED driver IC, spoke to the guests present about their ideas on the focus of the two LED industries of scale expansion and intelligent lighting.
Scale expansion
From the development history of LED industry in recent years, the driver IC industry has been paying attention to power supply, voltage, output range, design, manufacturing cost, and the cost performance of products. In 2016, the price hike swept the entire industry chain. In fact, in the second half of the year, our supply chain procurement costs have also risen by 10%-20%, and it is a cash payment.
So why didn’t you feel the wide-ranging price adjustments on integrated circuits at the end of last year?
I think it is this time to have a relationship at the end of the year. If it is 2017, we firmly believe that the supply of integrated circuits will be very tight. The increase in material costs also gives us control over the cost of materials.
And we have to achieve large-scale production, first of all we can control the direction and needs of the company in this regard, and how to achieve batch operations.
Sales channel management. You are now a small-scale enterprise. Blindly for the sake of desire, the word "desire" must always be vigilant about this risk in the minds of life. From the beginning we will have some profits, but we are blind. Desire will bring the risk of expansion.
In the past few years, many companies in the industry have done a good job, but now they are basically in a state of collapse. why?
Market risk is unpredictable. The most terrible thing about our current corporate management is quality risk. When we choose the supply chain, we blindly choose the price. It may be because a price causes the failure of the enterprise. Blind expansion must depend on our own strength and our own. Funds, own production, own goals, and market demand and channel management.
Mingwei has been in the display driver IC industry for many years. Last year, the most important thing was the channel, and your channel is not feasible.
For 2017, we think 2017 is a terrible year. For the integrated circuit, I think it is a very good year. But for everyone, it is very harsh, why?
SMEs are facing bottlenecks in funding. For example, the current competition in the IC industry relies on hard power. We have to place orders with all suppliers and pay 30%-40% of cash. This is the trend in 2017.
Therefore, I hope that SMEs will not expand blindly in 2017. It depends on whether advanced technology can cover automated production, including markets and channels. Because the industry will definitely enter deep integration in 2017, because the price rise must be an inevitable trend.
Linear necessity
From 2016, linear IC is accelerating growth, and linearity has gradually been accepted by international markets. For example, Philips has cooperated with us to customize linear products and is based on ODM. End-user recognition is the most important, and the North American market is also a huge demand.
From the very beginning, our linear products have been walking in the market for a long time. Now the market has just begun to have a little bit of maturity. In the future, this market must show a huge growth trend.
Our linear products are also diversified. I have also said that if you want to break away from heavy asset manufacturing, you must look at linearity. Many people also see the linear drive. What are the benefits? The products can be centralized, the specifications can be centralized in the future, and the solutions are standardized. It is simple, does not require purchasing more materials, and does not require management of materials.
If we expand to scale, we want to start with simplicity, and simplicity comes from the linearity we do. Linearity has been seen in the eyes of everyone as a lack of function. Why do we use linear drives when we turn on these dimming lights in the North American market today? Because technology is changing.
Diversified linear product features
We are now doing single and multi-stage, switch, and full-voltage linear products, can achieve 110V and 220V universal, this product is to let you not stock invalid.
For example, now your sales may tell you: this customer needs 110V, this customer needs 220V, the result is very blind, do not know how to arrange production, once the demand deviation, it is easy to cause backlog inventory.
Diversified filament lamps can achieve sunset effects. Its color temperature is different. Can you do it with a single chip? I can proudly say that I can. Dimming can be achieved on the above, such as the switch dimming of the current switching power supply, I think it is too complicated, still
It is simple, only simple to produce on a large scale, to minimize management costs.
Our series of products can be combined at will, the functions you want, my combination can help you achieve, including full voltage switch dimming, filament lamp thyristor, etc., which requires innovation.
SM2318E thyristor dimming, currently in the North American market, can not find the same product. Linearity You can't do it now, but you must pay attention to it. In 2017, Mingwei will have more linear products that can cover more than 80% of your current market demand.
Intelligent lighting
We position the smart lighting in three phases:
1. Cultivation period. High-end crowds, commercial photos, can save power, including the integration of some monitoring functions. But the only thing it has now is high profit, high risk and high cost. However, many SMEs can't do traditional things, do some differentiation, and do some smart lighting products.
But I found that when you make money, when you do it, it doesn't mean making money because it involves too many things, too many changes, too many things to modify, and its thinking changes every day. Therefore, I think smart lighting products are still in the experience period.
2. Development period. Now, after the big Internet of Things and Internet companies enter the intelligent lighting industry, what effect will it have? What effect does it have on the bulbs we make or the lamps we make? I think it has no effect, it doesn’t make much sense. Just give you a door to let you in.
And this door, there are many different kinds of doors, you do not know which door to go in, including the current wired, wireless, their technology continues to innovate, including carrier. Is the carrier the best? Not necessarily, wireless must be the best? Not necessarily.
This requires a system, not the level of the light we are discussing. What system can we use for this light? Just like we have an agreement for landscape lighting, we can pull it out and install it on any stage.
For example, if you go home, will you turn on the light with your mobile phone? I don't think so. But switch this thing, everyone in the room can not be missing is the switch. But some people say that the switch is made into a touch, I think it would be better to make the switch into a mobile phone touch screen.
But there is a bigger problem. The loss of each lamp is uncontrollable. We dig holes for ourselves. Now the life of the lamp is 20,000 hours. Will consumers have nothing to change for a smart lighting? No, so smart lighting Products are still limited to commerce, and this business is not a market that small companies can exploit.
Smart lighting is not a light, it is a system. If you want to succeed today, you must bind the system. But small and medium-sized enterprises are impossible. The current smart lighting is just a feeling of selling to these high-income people. I don't think SMEs should spend too much thought on it.
But we should think about what should be changed in the 5G era? I believe that the arrival of the 5G era should be intelligent lighting, smart medical care, etc. This is what I have been thinking about. The 5G era can change everything in our hands, including us. Mobile phones, our lives, etc. will change.
Mingwei LED drives are simple and illuminate the world; insist on innovation and create value for customers. We are still insisting on cutting-edge technology research and development, adhering to product innovation, our goal is to make it available to everyone, so that everyone can produce, and will provide you with simple, convenient, and meet the requirements of intelligent lighting.
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