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Infineon released the investor relations activity record on July 2, detailing the development status of medium and high power LED drive power market and the company's progress in plant lighting business.
High power LED drive power demand soars
Infield focuses on the field of medium and high power LED drive power, while the market of medium and high power LED drive power is highly decentralized. In this regard, infitt believes that there are three main reasons:
1. LED lighting is gradually developing and replacing traditional lighting, some traditional power enterprises gradually infiltrate LED driven lighting business;
2. LED lighting is widely used;
3. Many medium and high-power products are used in infrastructure construction and municipal engineering, such as road and tunnel lighting upgrading and transformation projects. Local governments tend to cooperate with local lighting engineering enterprises.
But infield also said that this decentralized state may change in the future. On the one hand, as the market matures and the industry shuffles, small and medium-sized enterprises will be eliminated, and the industry concentration will be further improved, leading enterprises may increase their market share; On the other hand, the participation of leading manufacturers in the formulation of industry and local standards will also make small and medium-sized manufacturers with lower technical level withdraw from the competitive market.
At present, the demand for medium and high power LED drive power is soaring. The main reasons, according to infield, are:
1. The explosion of demand in emerging application fields (such as plant lighting market) has brought about the growth of orders;
2. LED lighting demand will not disappear because of the outbreak of global epidemic, but will only lead to the delay of market demand. From the third quarter of 2020, the demand for orders due to the delay of the epidemic has gradually released;
3. Affected by the lack of industry materials, the downstream market makes strategic stock up.However, infitt also pointed out that although the market orders are sufficient, the whole industry lack of materials, which leads to the company having to select receipt according to the inventory of raw materials, which also brings uncertainty to the company's revenue.
But at the same time, Infineon also pointed out that although the market orders are sufficient, the industry wide shortage of
materials leads to the company having to selectively receive orders according to the inventory of raw materials, which also brings uncertainty to the company's revenue.
With the rapid development of plant lighting market, infield has the first mover advantage
In 2020, Infineon's plant lighting related power revenue is about 130 million yuan, a substantial increase compared with previous years, accounting for about 14% of the company's total revenue in LED driving power business. At the same time, infield also pointed out that the plant lighting market will continue to develop at a high speed in the future, but in 2021, affected by the lack of materials in the whole industry, the company's plant lighting related power revenue and proportion are uncertain.
Infield believes that the company's advantages in the field of plant lighting are mainly reflected in the first mover advantages, and the layout of technology, patent and intelligent interface is carried out in advance.
On the one hand, most of the plant lighting products are medium and high-power products, while Infineon has great competitive advantages in R & D, quality, reliability, cost performance and patents of medium and high-power products.
On the other hand, since its inception, Infineon has established a global marketing and service network, and has set up sales subsidiaries and overseas factories. At present, most of the plant lighting demand terminals come from overseas, and Infineon has a great advantage in overseas layout.
In the future, Infineon will continue to focus on medium and high-power driving power supply, and constantly launch products that are more in line with market demand and trend; In addition, infield will continue to invest in international plant lighting standards and patents to promote the continuous development of the industry.
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