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What does the upper, middle and lower reaches of the LED industry mean?

When the editor first entered the LED industry, the first time I heard my colleagues talking about LED upstream products, midstream products and downstream products, I was quite puzzled at the time and said I didn’t understand what kind of product classification method this was. Later, I consulted my colleagues and searched for information myself, and I finally figured it out. Let’s briefly summarize:
Usually what we call LED upstream mainly refers to the upstream epitaxial chip, that is, the chip inside the light-emitting diode (LED) lamp bead, as well as some related materials, including: high-purity gas, substrate material, MO source, alumina, phosphor, silica gel, gold wire, epoxy resin, silver glue and other materials. Upstream is also the most profound thing in LED. It has high technical content and high threshold. Competition is not as fierce as downstream. The price of LED displays in recent years has not had much impact on upstream companies. On the contrary, with the penetration of LED lighting into the home market, demand has become increasingly strong, and the profits of well-known domestic companies such as Sanan, Huacan, Crystal Optoelectronics, etc. have increased to varying degrees.
LED midstream mainly refers to the packaging of LED lamps. In layman’s terms, it means wrapping LEDs, which are divided into plug-ins, patches, dot matrix, and high-power LED lamp packaging. Relevant equipment includes: crystal bonding machines, wire bonding machines, glue filling machines, leg cutting machines, spectrometers, testing instruments, taping machines, crystal expansion machines, ovens, microscopes, vacuum pumps, etc. Domestic midstream companies mainly include Ledman Optoelectronics, Hongli, Ruifeng Optoelectronics, etc.
LED downstream applications refer to finished products, including LED displays, LED lighting products and various LED lighting products. At the same time, LED downstream also includes the development of some surrounding industries, such as driving power supplies, control systems, hardware boxes, control software, etc. The threshold for the downstream industry is relatively low. In recent years, with the influx of a large number of small businesses, various companies have engaged in price wars. Many companies have tried to control costs, which will inevitably lead to a reduction in product quality and have a great impact on the downstream industry. Moreover, the continued price war has caused the collapse of a number of companies, and it is inevitable that the industry will enter a period of reshuffle. Many companies have transformed or developed differentiated products. Small-pitch LED displays, various special-shaped screens, and creative products have entered the market and achieved good results.
Many powerful companies among LED downstream companies have slowly penetrated into the LED lighting industry. The lighting market has a large capacity. We believe that with the popularization of the civilian lighting market, LED downstream companies will also usher in a new spring.

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