"LED was chosen as the area of cooperation because China and South Korea each have clear advantages in this field." Xue Zhanchun believes that South Korea has advantages in the field of LED chips, while China has advantages in the field of LED packaging. If products combined with Korean LED chips are produced, products with high performance and price ratio can be produced. If products combined with Chinese LED packaging technology are produced, low-cost large-scale manufacturing can be achieved.
In Xue Zhanchun’s view, China’s LED market is growing steadily, and South Korea can expand its market size through cooperation with China. He pointed out that "South Korea's LED market is developing into various fields such as smart homes, and China is first promoting popularization in large cities with high penetration rates. If products that apply Korean advanced technology are introduced to Chinese large cities, and after increasing the penetration rate, seeking penetration in second- and third-tier cities, the market size can be comprehensively increased."
It is understood that the current market penetration rate of China's LED lighting products is about 9%, and the price has dropped to a level that is acceptable to the public. In addition, China leads the packaging technology of the LED industry, and the domestic production rate of chips is also constantly increasing. Xue Zhanchun proposed that "the Chinese government will phase out high-energy-consuming products by November 2011 and continue to increase LED production lines. As LED lighting fixtures become the general trend, LED product prices continue to fall and penetration rates continue to increase."
Xue Zhanchun proposed to carry out technical cooperation oriented towards platform-level innovation models. "Services can be provided together through platforms such as the China National Semiconductor Lighting Application System Engineering Technology Research Center and the Korea Optical Industry Promotion Association. Bilateral cooperation that transcends national concepts can be carried out. Therefore, it is necessary to eliminate trade barriers and actively utilize the respective advantages of the two countries to cooperate."
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