Daxin Electronics: Grab the mainland LED lighting IC market

[Source: Gaogong LED's "LED Good Products" magazine February issue / Wang Cairong]

Driven by the capital boom and the government's low-carbon energy-saving measures, the integration of the industrial chain of the mainland LED industry is gradually increasing. Driven by this, the market scale of LED lighting driver ICs is also rapidly expanding. Last year, many traditional power IC companies in Taiwan have laid out the mainland market. Taiwan's analog power IC industry veteran - Peiheng Semiconductor Co., Ltd. (hereinafter referred to as "Peiheng Semiconductor") is one of the representatives.

"We are optimistic about the prospects of the mainland LED lighting market, especially in the downstream application field. The layout of the mainland is mainly aimed at the LED lighting driver IC market." Li Mingru, chairman of Peiheng Semiconductor, said that for the west into the mainland LED lighting market, the company is in 2012. In the year, a branch company was established - Daxin Electronics Co., Ltd. (hereinafter referred to as "Daxin Electronics") is responsible for the R&D, design, testing and marketing of LED lighting driver ICs.

In fact, in recent years, some Taiwanese analog power IC companies including Li Yi, Zhixin, F-IML Ann, F-Angbao and Accumulation have already entered the LED industry, while TSMC, UMC, Hon Hai and Delta Semiconductor companies such as electronics are also competing to deploy their LED driver business.

"LED business opportunities are increasingly being favored by major power IC manufacturers." Li Mingru said that Peiheng Semiconductor chose to enter the LED driver IC business, which is also based on the above considerations.

The lighting IC market is gradually increasing

“The analog components used in traditional power supplies have been in development for decades, and now the cost is approaching the critical point, and the space for cost reduction is limited.

The growth of the LED lighting IC market is very exciting. Li Mingru said that LED lighting ICs can allow these traditional power IC manufacturers to gain new profit growth points.

According to the latest financial report released by Pei Heng Semiconductor, in 2012, the company achieved annual revenue of 407 million Taiwan dollars (about 85,673,500 yuan), an increase of 16.29%.

“This is mainly due to the increase in customer orders after the new products are put into mass production, and the LED lighting business in Asia Pacific and Greater China has begun to contribute revenue.

According to the reporter, in the second half of 2012, Daxin Electronics launched a series of new products for LED indoor lighting, including a variety of high power factor, high light efficiency and high reliability products, which can be designed for different applications. It includes lighting applications specifically designed for MR16, decorative xenon lamps and T8 tubes.

"Since October last year, we began to supply bulk to some LED lighting manufacturers in Taiwan. Although it is a traditional off-season, Q4 revenue still reaches NT$110 million, which is better than the industry's Q4 general season minus 10%. Li Mingru revealed that the branch company Daxin Electronics has also received orders from several mainland customers. It is expected that mass production will be shipped at the end of the first quarter of 2013, when the mainland region business will contribute new profit growth points.

In fact, as early as 2011, Pei Heng Semiconductor has begun to sell a small number of lighting IC products, but due to the high price of LED lighting source products, the upstream IC demand has always been difficult to increase.

It is worth noting that since the fourth quarter of 2012, the multi-core packaged HV-LED light source technology has matured, and the product market share has expanded rapidly. The market demand for high-voltage linear constant current drive chips is in short supply.

Li Mingru revealed that Peiheng Semiconductor has already smelled the blue ocean market of HV-LED driver ICs a few years ago, and has already seized the opportunity and successfully developed and designed high-voltage linear constant current driver chips for Taiwan Jingyuan Optoelectronics. At present, this product has been applied in batches in integrated photoelectric modules such as fluorescent lamps, xenon lamps and bulbs in Taiwan and mainland China, and will become the company's killer in the mainland market in the future.

Unfinished: For more information, please refer to the February issue of Gaogong LED's "LED Good Products" magazine.

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