Top LED manufacturers in china



Why source LED lights from China?

There are several key reasons why many companies choose to source LED lights from China:There are several key reasons why many companies choose to source LED lights from China:

## Cost Competitiveness

It has been observed that cost factors are still a major concern and Chinese LED manufacturers enjoy a major cost advantage because of cheaper labor, lower effective cost when operating on a large scale and government subsidies collectively known as ‘China price’. This makes them to be able to offer their prices in the market to be relatively lower than most of the other global suppliers.

## Manufacturing Capabilities

China has tremendous capability in LED manufacturing with sophisticated plant and equipments and has grown technologically as well. Most Chinese LED companies have spent a great deal of capital on research in a bid to enhance productivity as well as product quality.

## Economies of Scale

The vast sizes that LED industry has grown in China help the manufactures to realize large economies of scale. This means that the cost of production is more evenly spread and the overall profit margins are enhanced also in large production volume.

## Vertical Integration

Almost all Chinese LED firms are integrated manufacturers, they manage the whole LED supply chain from epitaxial wafers to end products. This ensures improved quality and right costs attributed to medical products.

## Rapid Prototyping and Customization

Chinese LED manufacturers tend very much respond to particular customer demands in a short time and firstly provide individual developments and prototypic designs. Buyers find their features easy to maneuver and quick and this makes them appealing to the buyers.

## Supportive Government Policies

That is why the Chinese government has applied numerous measures to encourage the development of the LED industry: subsidies, tax preferences, investments in research activities. This promotes the conditions for LED manufacturers.

## Abundant Raw Materials

China has ensured it has raw materials that are essential in the making of LED such as gallium and indium in large quantity. This is a good practice, and will assist in providing required consistency and continuity on supply side of the chain.

## Established Supply Chain

China has advance LED supply chain system which consist of various suppliers of LED components and many service provider. This ecosystem provides a good environment from where production as well as distribution can easily take pace.

Indeed as noted above, there are many benefits of sourcing from China, but there are also some issues that the buyers should consider such as quality assurance, control of intellectual property and issues relating to supply chain. The following risks are evident with sourcing LED products from China: To eradicate these risks, it is recommended to develop good relationships with credible Chinese LED manufacturers successfully.