Also, we’d expand to other technologies SMT, with 3535 technology, and we have nice preparation there, we can provide die packages in a very favorable cost for our customers, so that is another exciting products we put in the market.

　　Move it to the technology we are talking about that would come out this year, the first is the AC LED on COB, second is the GaN on Si chip technology, which basically lower cost chips than on the market today, it is new formulation of chip. And it will going to SMT and COB products in the future.

　　Reporter：How are these new products different from others on the market?

　　David：SMT is a kind of product to fill the gap between very high cost products from Cree , Philips and other western brands etc., and the very low cost products made from local suppliers, so it is a lower cost more affordable products for customers, but also with higher reliability for sure.

　　Reporter：Could you say something about the GaN-On-Silicon products?And what is the Bridgelux’s next plan for it?

　　David：We start to commercialize the technology in the torch light space, also we are looking for camera flash space for Q3 this year, it will moving into general illumination for Q4 this year, so that chips available for SMT products, and very big innovation there, really happens more in the chip manufacturing, more than what the customers see.

　　So next generation chips GaN on silicon would be CSP(chip scale package), today most chips are blue chips, need to put down the phosphor on the substrate, CSP doesn’t need substrate or phosphor, so it takes two cost step off in the manufacturing, and again takes the cost much lower. It can also direct attach CSP so that not need for a wire bond we put it onto the PCB. So that will reduce the cost again.

　　Reporter：As we know, higher quality and lower price is becoming more and more important for the end user market, as a LED chip and package provider, How do Bridgelux deal with it?

　　David：Yeah, I agree. As a high quality provider, we initially build reputation on quality. Actually we have very big business in China, and the progression of the business have been taken, we get the cost down, we make the product acceptable for China market, so we can not play the market globally it were never to take up the technology, optimize for every regions, and then cost down, rather than, may be, developing for the first time to be low cost that make sense.

　　Reporter：There is one opinion that the increasing LED lighting demand is likely to boost the price of LED chip, do you agree with that? And what is your opinion?

　　David：Absolutely it is not happening for us. A bit part of ability to cost down, we buy more material, and we can get a cheaper price, so as the market grows, will learn the negotiate with suppliers, they give a better terms, and so the products gets cheaper. The price is will going down because of the Scale production.

　　Reporter：How do you think that connected lighting is leading opportunities to LED businesses? what is the plan of Bridgelux in connected lighting?

　　David：Well, this is really an interesting growing up opportunity for the space, I think it is very challenge, some people think it just take any chip radio to put into a light and it goes work.

　　I think, it is a lot new on a lot of complexity has been figure out, how do you make the radio work with a demo, can be go changed and get through a circle with control, how do you manage the space you adding to light source to a fixture, how exactly fits into a expected size of the fixture, it is all kinds of problems you get to manage had say.

　　So only though that complexity is really comply to a technology provider, to make a solution that turn it for customers, because lighting in the end without finishing never can not happen if don’t understand, this technology is pretty far a move from the specialties. So for us, anything can work to solve out in our company many people are come from IT space, or computer technology, it is a problem to solved easier than other companies.

　　I think our approach should a little bit different from others in the industry, at least to the technologies, we want to put it direct onto the COB package, as a thrust to the driver onto another box, we can benefit there:

　　1. easier integration and easier solved the problem by putting directly onto the COB.

　　2. from a functional point, it increase functionality you give for having that technology on COB, you can measure the temperature of the light source for instance. They helps you figure out whether it running too hot, it is creating too much heat, exactly impact the useful life of the products, it can also do energy marker and write the right source to figure out how much energy that is consuming, it makes dimming easier, so it is easier to go through a dimming control.

　　COB is for an easy integration, and cost on point, and the features in functionality, it can delivery on a COB.

　　Reporter：How do you think about China market? Could you share with us the future plan of BRIDGELUX in China? What is purpose for BRIDGELUX to set the R &D Center in Xiamen and Shanghai?

　　David：China is a big market and it grows three times the rate of the rest of the world. Our business in another part of the world like Europe, is very large and very profitable, but its grow rate may be 5% a year, 10% a year, In China the market growing may be 30%, it is growing so quickly, and we would see more and more.

　　In US, Europe company sourcing their designer from China for ODM, or manufactures here, Now we will offer to the Chinese company, manufacturing the products in many cases，they will done the design work as well, so, if we found that somebody is big brand in restaurant market, you actually have the relationship with the manufacture you design in China, so it is really important set off the relationship you have to have, we will expand a line of our products road map, and are developing a model to make sure they work position to take an advantage of those customers.

　　Reporter：In you opinion, where would be the chances for LED development in the next decade? And how do Bridgelux prepare for it?

　　David：I think, the market even though is growing very fast, and has a long way to go, and turns global penetration , many new applications that start to appear may be have a sparkle before. And I think the application like down lights, may be low cost LED bulbs, street light, have been very popular and a lot of fixtures we make and install, I think very under penetrating global light, and LED it seem really take an advantage this market, so as LED technology thrust for market, it is going to create a lot of growth, I think.

　　The secondary, we look at would be increase functionality for small lighting, I think it will really open up many new market, I think penetration there still global 10% of the total sockets in the world, I think that number is going up very dramatically in next 3~5 years, solution does to be a big driver to growth.

　　Over all, you can see more new build pick up in next three years, outside the china, there has been much building going on, there much residential lamps, as the rebuild start to pick up, the new market is going to take off, so more down lights, more track lights, more fixtures that agricultural lighting, decorating lighting, are going to be scale and more and more penetration in the market can be happened, so the three parts I am looking at.