The impact of the new coronavirus pneumonia epidemic on the LED industry chain


The new coronavirus epidemic spread rapidly before the lunar new year. To control the epidemic, the government first announced the implementation of "closure" measures on several Hubei cities led by Wuhan, and then successively removed Beijing, Shanghai, Shenzhen and other provinces, counties and cities. Incorporated into closed management, and extended the Lunar New Year holiday, and did not officially resume work until February 10.
 
However, as the epidemic heats up, many regions have postponed the resumption date again, and because the government and manufacturers have strengthened their control, people who return to work from other counties and cities must self-isolate for 14 days. Even if some factories have already started, they produce online manpower. It is also difficult to reply immediately. According to LEDinside's survey, most LED manufacturers are quite conservative about the resumption rate, and the resumption rate in mid-February is estimated to fall between 50-70%.
 
The backward production plan caused by the delay in resuming work is bound to impact the entire industry. For the LED industry, from the upstream sapphire substrate and chip manufacturing, to the downstream packaging stage, and subsequent application production, the extent of the impact varies depending on the location of the factory, manpower requirements, and inventory.
 
From the perspective of LED chip production, since the LED industry is in a state of oversupply in 2019, chip manufacturers currently still have inventory products accumulated last year for sale, so production delays will not have an impact in the short term. However, because the supply of chip raw materials such as sapphire substrates may be interrupted due to the epidemic, coupled with the delay in resumption of work, and the increase in labor production costs, it is estimated that chips will have a chance to start to increase in price after March.
 
The downstream LED packaging manufacturers are more affected by the delay in resuming work than the upstream chip side, because the labor demand of the packaging factories is high, and the factories are mostly located in Guangdong and Jiangxi provinces, and the employees are mostly migrants from all over China. If the rework condition is not good, the lack of work continues, which will directly affect production. At the same time, due to the low inventory level of the packaging plant, the demand for resumption of work is even more urgent.
 
In terms of end application products, Hubei, as a major automobile production center in China, has been greatly affected by the epidemic. As the resumption time is still difficult to determine, the lack of related parts and components also affects subsequent automobile production, and consequently causes the impact of automotive LEDs.
 
The impact of panel production and backlight modules also comes from the shortage of upstream raw materials. Although panel manufacturers have resumed production one after another, if there is a lack of materials, the factory utilization rate is expected to decrease in March. At the same time, the rapid increase in confirmed cases in South Korea has also begun to have an impact on local panel production.
 
In addition to production delays, the current global pneumonia epidemic has also caused many heavyweight exhibitions to be cancelled or postponed. MWC, the mobile phone industry event originally scheduled to start at the end of February, announced the cancellation on February 12, and the biennial Frankfurt Lighting Fair Light + Building also moved the exhibition period from March to September.

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0603, 0805, 1210, 3528, and 5050 refer to the size of surface mount SMD LEDs. For example, 0603 means the length is 0.06 inches and the width is 0.03 inches. However, note that 3528 and 5050 are in metric units. Below are the details of these specifications: 0603: Converted to metric is 1608, which means the length of the LED component is 1.6mm and the width is 0.8mm. Industry abbreviation is 1608, and the imperial name is 0603. 0805: Converted to metric is 2012, which means the length of the LED component is 2.0mm and the width is 1.2mm. Industry abbreviation is 2012, and the imperial name is 0805. 1210: Converted to metric is 3228, which means the length of the LED component is 3.5mm and the width is 2.8mm. Industry abbreviation is 3228, and the imperial name is 1210. 3528: This is the metric name, which means the length of the LED component is 3.5mm and the width is 2.8mm. Industry abbreviation is 3528. 5050: This is the metric name, which means the length of the LED component is 5.0mm and the width is 5.0mm. Industry abbreviation is 5050.


Due to the impact of the epidemic, the implementation of these two LED lighting standards has been postponed.

On April 2, the State Administration of Market Regulation (SAMR) announced the postponement of the implementation of 13 national standards, including the "Energy Efficiency Limits and Energy Efficiency Grades for Unit Air Conditioners." The announcement stated that due to the impact of the novel coronavirus pneumonia epidemic, the SAMR decided to postpone the implementation date of 8 national standards, including the "Energy Efficiency Limits and Energy Efficiency Grades for Unit Air Conditioners," from May 1, 2020, to November 1, 2020, and the implementation date of 5 national standards, including the "Water Tap Water Efficiency Limits and Water Efficiency Grades," from July 1, 2020, to January 1, 2021. Two of the 13 standards relate to the LED lighting industry: "Energy Efficiency Limits and Energy Efficiency Grades for Indoor LED Lighting Products" and "Energy Efficiency Limits and Energy Efficiency Grades for LED Road and Tunnel Lighting Fixtures." Both of these standards will be postponed to November 1, 2020. (Source: State Administration of Market Regulation)


Proven effective! UV LED can kill 99.9% of coronaviruses within 30 seconds

SeoulViosys and SETi announced that their VioLEDs UV-LED technology successfully killed 99.9% of the novel coronavirus (COVID-19) within 30 seconds. The news shows that SeoulViosys and a research team from Korea University used mass-produced Violeds compound semiconductor technology for the test. This research demonstrated the strong sterilization effect of Violeds UV-LED light source on the novel coronavirus after irradiation for 30 seconds. The study also found that the sterilization effect would be stronger if the coronavirus was placed closer to the light source and the irradiation time was extended. In addition to testing the coronavirus, the research team also proved that the Violeds technology achieved a 99.9% sterilization rate against harmful bacteria such as Escherichia coli, Staphylococcus aureus, Pseudomonas aeruginosa, Klebsiella pneumoniae, and Salmonella typhimurium.


RGB and white light LED

When discussing the joys and sorrows of white light LEDs, one cannot help but mention RGB and white light LEDs. Both aim for the same result – white light – but one achieves it directly, while the other mixes red, green, and blue light. One criticizes the other's purity and high price, while the other counters with its beautiful colors and accuses the other of being outdated. This war is unlikely to cease in the short term. However, while personal preferences vary, the technical and cost aspects are more complex. Some things are non-negotiable. In terms of frequency and voltage consistency, if adjustments cannot be made, the resulting mixed light may be uncontrollable. Therefore, both technologies exist and have their markets. However, whether the market dictates technology or technology drives the market is a subject of considerable debate. Those who appreciate high image quality will notice that some LED backlights exhibit exceptionally clear and vibrant colors, comparable to high-definition televisions. This is a characteristic of RGB, which emphasizes pure red, green, and blue. Its light mixing offers greater versatility, like an artist's palette, allowing for the perfect representation of the real-world color spectrum, enhancing the beauty of life. While white light LEDs, primarily using phosphor, cannot escape the issue of aging, they maintain a market presence primarily due to cost! One LED outperforms three, which is the key to its market success. Currently, RGB LEDs are significantly more expensive than white light LEDs. Their only competitive advantage lies in backlights. In the future, they may compete with white light LEDs, but currently, they are mainly used for auxiliary lighting. While individually controllable RGB LEDs allow for direct control and good color mixing, achieving a truly pure white light is a challenge. Although expensive, they generally offer better quality. White light LEDs, while cheaper and able to directly replace CCFLs as the main LED technology, suffer from instability due to wavelength and frequency issues when packaged together. However, RGB LEDs still have control issues. For example, if one LED fails, it is highly noticeable on the screen. In contrast, white light LEDs can compensate for each other. Their side-emission nature allows them to compensate for a failed LED, maintaining overall uniformity. Currently, there's no definitive answer as to whether RGB or white light LEDs will become mainstream. Market application and cost will be the primary deciding factors.


LED light emitting diode

Light-emitting diodes are commonly used light-emitting devices that emit energy through the recombination of electrons and holes to emit light. They are widely used in the field of lighting. Light-emitting diodes can efficiently convert electrical energy into light energy. LED lamps and lanterns generally have the characteristics of long life, good lighting effect, and energy saving. Because of so many characteristics that are superior to other traditional lamps, they have a wide range of uses in modern society, such as lighting, flat panel displays, and medical devices.