LED prices fell frequently , in fact, this also has good and bad influences, if the price fell to the sweet spot , it may create reverse growth , but if prices fall too fast , firms may have to work hard . ITRI Sankei Center (IEK) analyst Guo Ling said lower LED production costs, has become an important issue vendors , including the posterior segment packaging, heat and driver IC, will reduce the cost of the three manufacturers an important issue .Guo Ling pointed out that in recent years by the international companies have cut back-end packaging and non- packaging products toward observation, packaging manufacturers to reduce costs has become the key to the profitability . In addition, LED upstream and downstream industry chain, the highest value is not light , and in the rear lamps, so the manufacturers are focusing on the back-end layout. LED low-cost technology to actively encourage manufacturers to reduce costs, Guo Ling said, LED components highest proportion of packaging and cooling costs , accounting for more than 60% , becoming an important direction for manufacturers to reduce costs , estimated 2016 cost of packaging must fall at least 50% before contribute to the rapid development of LED industry and manufacturers to maintain profitability . In this regard, the development of listed companies Epistar ELC without packaging technology , only chip , phosphor and packaging adhesive, eliminating the need for wire racks, wire and other steps , you can directly SMD (SMT) use , in addition to reducing costs, product have the advantage of emitting angle , eliminating the need for the future have the opportunity to use the secondary optical lens .TSMC Solid State Lighting , introduced PoP without packaging technology , directly to the flip-chip substrate to play in the heat , omit the lead frame and wire manufacturing process , with a small advantage with the higher flux for directional lighting applications, with easy blending and control the color temperature. In addition, the proportion of the cost of LED driver IC accounted for 20% , it will be the key to reducing costs , to the optical one, adopt non-isolated structure , enabling cost savings.