Low-power LEDs dominate output

Hong Kong’s LED industry is primarily packaging-based, with the majority of the 20-supplier pool focusing on low-power products. It is for this reason that DIP units dominate most shipments.

The territory’s tier 1 companies, while better positioned to invest in the development and manufacture of SMD and high-power variants, are more inclined to promote finished products. These include rope lights, tubes and outdoor luminaires.

Local ventures in general avoid competing with major overseas players in terms of technology and manufacturing scale. They, however, have the capability to provide midgrade and cost-effective SMD and high-power diodes.

Nevertheless, DIP units are expected to remain as the revenue earner for most companies in a few more years despite narrowing margins due to competition.

To boost overall sales standing, many offer finished products such as cluster lamps, flashlights and display modules using their diode output. This part of the business is undertaken with partners in mainland China and Taiwan. In the long term, it can become a permanent shift for many, while new entrants may assume more sales intermediary roles.

At present, suppliers are pursuing diversification in LED lamps as applications grow steadily. The toys and decorations sectors, for instance, are experiencing rising uptake for diodes, propelling makers to create product series with light-emitting patterns.

Depending on their specialties, companies address technical challenges such as increasing luminous intensity especially for white LEDs, reducing power consumption, expanding packaging options and extending product life.

Yes International Co. emphasizes 1 to 3W high-power UV LEDs with 360 to 449nm wavelength. Lucky Light Electronic International Co. Ltd is developing a selection of different colors, luminous intensities, sizes and shapes, including round-type 10mm superbright LEDs.

There are at least 20 suppliers in Hong Kong. Many have factories in the mainland, where a maturing local supply chain for LED chips, driving ICs, lead frames, phosphor and other raw materials has been established. A few act as export sales medium for some of the mainland’s estimated 600-plus LED product makers.