Multi angle analysis of the domestic LED industry in the second half of the year
Source: Date:2018-08-07

The LED industry chain mainly includes raw materials, equipment, upstream chip manufacturing, mid stream LED packaging and downstream LED applications. The downstream LED applications are mainly divided into LED lighting, LED display and LED backlight applications. LED application is an important link in the whole industry chain which can bring high added value. At present, the largest market size in the downstream applications of LED is the field of lighting, followed by backlighting applications and display screens. The application scale of the display screen still maintains a relatively stable and rapid growth trend, especially with the maturity of the small spaced LED display technology. The application of LED display will gradually move from the outdoor large size display to the interior, and the application field will be widened significantly. It is expected to maintain a very high speed of growth in the next few years. The proportion of LED display in the whole downstream application industry chain is increasing gradually. The analysis of the industrial chain development of the middle and lower reaches of the LED showed that the output value of China's LED industry reached 109 billion 700 million yuan in the first quarter of 2016, up 23.1% from the same period, and accelerated the growth rate of the same year. Among them, the output value of LED chips, LED packages and LED applications in the first quarter were 3 billion 340 million yuan, 17 billion 620 million yuan and 88 billion 730 million yuan respectively, with a year-on-year increase of 13%, 16.7% and 24.9% respectively. The growth of the middle and lower reaches of the LED is obvious. The growth rate of the upstream chip and the middle reaches of the package is lower than the industry average, and it is still affected by the market price competition. Price: the LED chip price will not change too much in the second half of the year in 2016. It is influenced by the weak demand of the international market and the slowdown of China's economic growth. The LED industry has the characteristics of the homogenization of products, the white hot price competition and the normalization of merger and acquisition. In 2015, the new capacity of LED chip manufacturers in mainland China continued to release, and the proportion of market oversupply was up to 20%. In the first quarter of 2016, the impact of inventory and chip enterprises on the adjustment of the production structure, the industry overall productivity utilization decreased, and last year, the LED lighting chip prices declined considerably. In the first half of this year, some enterprises chip prices have a small tone back trend. Although crystal, Samsung, CREE and other international enterprises have made the decision to reduce production, but the domestic enterprises such as China can optoelectronic, Shunchang and other enterprises have been in full production state, the market overall supply and demand pattern is still not changed, still in a state of oversupply. With the completion of product restructuring in the second half of the year and the promotion of market demand, the overall price of the chip will remain stable. In the first half of 2016, the optoelectronic Blue Green Chip project was put into production in the first half of 2016, and the production capacity of the company's blue and green chips will be gradually released in the second half of the year. The two LED extension and chip project in Shunchang will be completed in the second half of 2016, and the production capacity is expected to double at least. In the second half of 2016, the production capacity of Xiamen San an optoelectronic Co., Ltd. is gradually released, and the company has already invested in 28 chambers of MOCVD equipment (converted into 2 inches, 54 Units equivalent to 56), of which the capacity of 12 chambers in March will be reflected in the two quarter, and the remaining equipment will be put into production as soon as possible. It can be further expanded. In May 2016, Hua can optoelectronic total investment of 6 billion yuan LED extension, chip and sapphire processing project, in Yiwu Industrial Park in Zhejiang officially started the ceremony. Technology: EMC packaging, CSP chip level packaging has become a trend from 2015, packaging enterprise market competition has further intensified, the growth rate of enterprise net profit has been declining, enterprises began to focus on the development of LED packaging technology and market development. With the maturity of the LED lighting application, the demand for the medium power LED market has risen sharply this year, and the LED packaging plant is actively importing the EMC support for medium and high power. EMC packaging devices from the past 2W products are mainly under the penetration of 2-5W products, coupled with the price acceleration decline, has been a threat to the traditional PPA scaffold and ceramic substrate. PHILPS, CREE, OSRAM, Samsung and other international giants have been rolling out LED chip and chip - level packaging products. The domestic chip enterprise De house run Da also intends to use 500 million yuan to build LED chip package project in the second half of this year, and more flip chip and chip level packaging products will be launched in the second half of the year. Market: the subdivision market becomes the breakthrough of the enterprise, the new subdivision market, such as small space display, automobile lighting, plant lighting and UVLED, will become the subdivision market for the rapid development of LED industry in the second half of 2016, and quickly become the focus of the industry. The first quarter of 2016 signed an order of 284 million yuan to 284 million yuan, up 155.86% from the same period last year. The first quarter of Otto electronics showed that the export contract order of the product was $19 million 400 thousand, exceeding the total of the LED product export contract orders in 2015. In the first quarter of 2016, the net profit of the Buddha was about 10 million yuan (9 million 950 thousand in the first half of 2015), a significant increase in the last quarter of the year. At the same time, LED replaced the traditional xenon lamp, halogen lamp, the headlights of the car headlights market space is still very large. Small space screen, automobile lighting and other subdivision markets have a broad prospect. Industry: industrial chain integration to further accelerate chip manufacturing, packaging enterprises, product application enterprises are still in the rapid integration stage. With the upsurge of investment expansion in the early LED lighting market, the production capacity of the chip market is greatly expanded. Each big chip enterprise begins to integrate the high quality assets of the middle and lower reaches of LED, perfect the industrial chain, and further extend the business operation of the enterprise. In March 18, 2016, hucan optoelectronic announced the acquisition of 100% shares of Yiwu Rui Jing Optoelectronic Technology Co., Ltd. In April 1, 2016, San an optoelectronic issued the "foreign investment Bulletin of wholly owned subsidiaries", and decided that the wholly owned subsidiary company, San an integrated company, bought compound semiconductor manufacturing company GCSHOLDINGS, INC. In April 25, 2016, de Howard issued a announcement that the company's wholly owned subsidiary, Dalian de Hao photoelectricity and its subsidiary, was to purchase the shares of Dalian fully owned lighting 76.33% and 23.67% in Dalian, Dalian, Dalian, and 100% of the total. ... The LED industry is entering into the transition period from the rapid development period to the mature period of the industry. The integration of LED chip, packaging and application subdivision industry is accelerating. In the last two years, the merger and acquisition of LED industry has taken place dozens. In the second half of 2016, the merger integration of industrial chain of LED industry will be further quicker, and some major mergers and acquisitions will settle the dust.

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