2014 LED industry or will enter a large-scale reshuffle war"

2013 is an exciting year for the industry who is also very anxious for a year, the excitement is due to the rapid development of the lighting industry, driven by the downstream production can be brought into full play, but also to overcapacity slowed. Concern is that although a lot of orders, revenue growth, but because of the price war, resulting in lower gross profit margins, so the industry into the micro era".

With the development of LED technology in China, the price performance ratio of LED lighting products is getting close to or even lower than that of traditional lighting. 2013 was considered a lot of LED industry is the best year, product sales all the way to go, but the product homogeneity, price war, low margin and other issues also plagued the development of the industry as a whole.

LED industry reshuffle

Say goodbye to "rivers of blood" in 2013 to 2014, LED lighting industry for light, integrated the research unit forecast 2014 annual LED lighting demand will be 50% to 100% growth, benefited from the 2013 LED capacity expansion has slowed down, and the new technology of rapid cost reduction, market supply and demand situation improved, the industry generally estimated this year is the industry once again "shine" of the year, but also to win the key attack.

Finely differentiated catalytic shuffle

Along with the energy conservation and environmental protection on the agenda of the next few years, LED development prospects are very impressive; so the day before LED occupation competition is very intense. Coupled with the economic globalization led to a variety of production factors and resources in the global scope of activities, equipment and restructuring, the company produced some of the work has also been to the horizontal and vertical expansion of the global division of labor. Today, LED industry also has a significant performance of this trend, but the industry is still heard about the company do is the extension of industrial chain about sound, but with heavier economic competition and trust, the future of the LED industry division of labor will be more and more fine.

In 2014 the world's traditional lighting will become history, LED factory actively capture new markets, EPISTAR has developed new technology to replace the traditional candle lamp; the East Bay has also received new orders LED candle lamp, and by canyuan and LED chip power supply; the new century new products into the European market supply chain.

Silan Chen Yue said, the company will further layout of special lighting market, such as outdoor landscape lighting products and automobile headlights, mainly to do the brand, not the pursuit of scale.

Special lighting quality requirements are very strict, the current landscape lighting packaging products have been supplied to the CREE, the monthly production capacity of about a few million, should be higher next year. Chen further said.

The whole industry chain to join the tide

The domestic LED industry after the first several years of development, has made considerable progress in terms of scale, technology, products, but also faces many problems, LED excess capacity, a large number of enterprises, product performance level is uneven, the price war intensified, many enterprises do not have a clear business and product positioning.

The future of the LED industry will be a big reshuffle, whether it is a listed company, or state-owned enterprises, private enterprises, the next five years, will face a very grim situation. Especially in the next three years, the LED industry big fish eat small fish, fast fish eats the slow, will be the industry norm, because the market is so big, this is the inevitable result of market regulation. Non-listed company may be basically eliminated or integrated. Expected turnover below the level of tens of millions of enterprises are unlikely to survive in the future.

First, upstream

In the next 2 years, the price war and the performance of the war, the domestic chip manufacturers will be from the current 51, M & A integration to about 10. One of the scale of the enterprise 2-5, especially in the field of subdivision of the 3-5. So with the scale effect, can carry the price war, the technology will survive.

Two, midstream

In the upper and lower reaches of the extrusion, the package will move in two directions. First, horizontal and vertical integration, take the scale. The form of packaging is not the packaging factory to come up with, is based on the needs of downstream customers. Downstream customer demand for a variety of packaging forms. Chip factory to cover all the forms of packaging, the cost and investment disproportionate. So in the white power chip, the added value of the packaging industry and space, although it will be squeezed, but it will not be replaced, it is impossible to completely disappear. As the semiconductor industry, so 2.5D, 3D, and the old packaging still exists.

Some packaging factory started hezonglianheng, through large-scale relief by extrusion pressure. This year, there are 1750 packaging plants, is expected in 2018 will drop to 700, and the formation of strategic alliances with the downstream, and eat small plant market space. Before the packaging company's production capacity is not enough, and now more than 500kk is very normal, and some reached 1000kk, but also close to full production capacity, which are concentrated in the regional market, large-scale performance.

Two is the extension of the downstream lamps. The future of packaging to make lighting manufacturers, and lighting manufacturers will reach the proportion of 3:7. For example, Linsen his own package, and then make a product, price in place, others did not get his way. But the channel is the biggest problem facing these packaging plants.

Three, downstream

Transformation of the fast, there are advantages of traditional lighting channels have a great advantage, the slow transition of traditional lighting companies will die. Most LED companies can not do the scale, and the channel is very expensive, but also can not afford to shop, shop less and no effect. So most