The president of the Foshan Lighting Association said that the price of a 1 watt LED chip was about 3 US dollars two years ago, but now it has dropped to less than 1 US dollar. Some Taiwanese and mainland-made chips have even dropped to 3 yuan.
It is understood that the chip accounts for at least 1/3 of the cost of LED lamps, and the price reduction of the chip directly drives the price of LEDs to drop. Since the price of chips has dropped by about 20% every year in recent years, the sales volume has generally increased by 10%-30% in the first half of the year. The price of LED lights has dropped, which has brought benefits to downstream manufacturers to open up the market. Foshan's export LED lamps are growing at a 100% rate. A manufacturer pointed out that the price of LED lights will definitely go down, and it is estimated that they will gradually enter the ordinary family in batches next year.
At the same time as chip price cuts, it also increased the pressure on upstream chip manufacturers. The squeeze on its profit margin is very large. The market has also begun to appear low-cost inferior LED lights. LED manufacturers remind consumers to buy LED lights not only to see the brightness.
In addition, the price of phosphors, the main raw material of energy-saving lamps, has risen 10 times, resulting in cost pressure on energy-saving lamps and accelerating the transition of Foshan lighting to LEDs. It is reported that Foshan Lighting currently invests 200 million yuan in the LED project.
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