Zhejiang Yuanda Electronics: Positioning the high-end circuit board market

[Source: Gaogong LED 's " LED Good Products" magazine January issue / He Jing]

"From the circuit board to the finished LED products, there is still no unified standard. The market game rules have not been established, and the price competition has been extremely fierce." Liu Wei, chairman of Zhejiang Yuanda Electronic Development Co., Ltd. (hereinafter referred to as "Yuanda Electronics") It is said that the LED industry has not developed in China for a few years. The government's support is not a cure for the symptoms, and there is still a great lack of technical innovation and quality assurance.

It is understood that aluminum-based copper clad laminates are widely used in high-power LED lighting, power supply, TV backlights, automobiles, computers, air conditioning inverter modules, avionics, communications and other industries, even the commonly used mobile phone camera, aluminum base CCL is also a must-have component.

In Liu Wei's view, in the circuit board industry, many domestic companies are only doing simple processing, and have no in-depth understanding and research on raw materials.

"Foreign companies have better technical capabilities, but cost control has problems; Chinese companies are blindly pursuing costs and lacking in technological innovation and reform." Liu Wei said that product competitiveness is a combination of technology and cost. Innovations in marketing, internal management and technology research and development are key indicators that reflect the competitiveness of a company.

At present, the price war in the LED circuit board market makes it difficult for Yuanda Electronics to go too fast.

“Yuanda Electronics has always sought to improve costs while reducing costs.” Liu Wei said.

Standard and market game

According to the previous plan of Yuanda Electronics, in 2012, the company achieved the goal of achieving the first market share in East China within three years.

Despite this, the overall environment of the entire market still makes Liu Wei feel pressure.

"Since 2007 and 2008, many companies have begun to transform into LEDs, market propaganda is in full swing, and standard setting has been delayed." Liu Wei pointed out that before the standard was determined, the products were mixed, low-priced vicious competition, bad money expelled. Currency, the more the company is tired.

Specific to the aluminum substrate used in LED fluorescent lamps, the price per square meter ranges from three hundred yuan to eight hundred yuan. "The lower the price, the quality is undoubtedly a sacrifice, the quality will not reach the effect of the promotion, and ultimately affect the consumer's confidence in the use of LED products." In this regard, Liu Wei feels helpless, "the standard of components is not Down, the market will be messy."

In addition to the lack of uniform industry standards, there have been some misunderstandings in the standardization of circuit boards used in other industries.

Take the board's impact withstand voltage standard as an example. The highest foreign standard is 3750V, but the domestic requirement is 4000V. "This high standard is not necessary, and not many companies will strictly abide by it." Liu Wei said that it is the irrationality of such standards, which ultimately led to an increase in production costs and a decline in market competitiveness. "Enterprises are not charitable organizations. They are more or less in pursuit of profit. High standards can only force domestic companies to cut corners and reduce their choices."

Unfinished:

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

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