During the initial development of LED Lights , the prices are often high due to the multi functions and new high-tech material. Customers are used to cheap common incandescent lights and they need a transitional period to accept the price difference for new lights. Since the prices for led high bay is higher than that of traditional lights, LED high bay has not wide spread yet. The reason for that mainly lies in higher product costs, among which chip cost accounts for a large percent.So how can we reduce cost for LED chips and how to implement it? Many enterprises and manufacturers are now working on research and production of chips without encapsulation. The encapsulation free new chips will promote a new generation of LED Lighting products. What’s more, new structure, new technique and new material can also save cost, which call for innovation and reform from enterprises.