Development status and trend of LED driver IC industry in China

With the continuous development of LED technology, the field of product application gradually expanded, in recent years, China's LED market has maintained a rapid and stable growth. In the global financial crisis, integrated circuits, mobile communications, consumer electronics and other traditional advantages of the industry has been the impact of growth, decline, and China LED market still maintained a rapid growth of two digit, showing great vitality of the market. LED driver chip industry even in the field of integrated circuits, but the market and the application of LED synchronization, the rapid growth in the Chinese LED market strong growth, 2007-2010 China LED driver chip market compound annual growth rate reached 30.3%, achieved against the market trend of rapid growth in the global financial crisis, almost become the segments of the integrated circuit industry in China the fastest growth. First, the development of China's integrated circuit industry for nearly ten years, China's IC industry has maintained a steady and rapid growth. 2008, the impact of the global economic downturn, China's IC industry for the first time negative growth in 2009 continued to show a downward trend. 2010, after two consecutive years of negative growth, China's IC industry rebounded rapidly rebound, the size of the industry rebounded sharply, annual sales revenue reached 143 billion 710 million yuan, a substantial increase of 29.6%. 2006-2010, China's IC industry sales revenue CAGR of about 9.3%.

Figure 120062010 annual sales income of China IC industry size and growth (100 million yuan)

Source: China Semiconductor Industry Association, CCID Consulting Group 2011, 02

Two, China's IC design industry development overview of the integrated circuit industry chain by IC design, chip manufacturing and packaging testing of the three components. In recent years, as a national key support industries, China's IC design industry in the domestic market continued to develop rapidly, has become China's IC industry, the fastest growing link. 2010, China's IC design industry achieved sales of 35 billion 460 million yuan, an increase of up to 31.4%. 2006-2010, China's IC design industry sales CAGR of 17.5%, higher than the average level of China's integrated circuit industry. Relative to the huge market demand, China's chip design industry is still small, a huge gap between supply and demand. At present, the domestic self-sufficiency rate and the global share is still significantly lower. From the statistical analysis of the past few years, the domestic production of chips (including foreign owned enterprises to produce chips) accounted for about 25% of the domestic market demand, the vast majority of chips still rely on imports.

Figure 220062010 in each link Chinese IC industry sales revenue scale and growth (100 million yuan)

Source: China Semiconductor Industry Association, CCID Consulting Group 2011, 02

The status quo and development trend of the chip industry three, Chinese LED driver (1) market size and forecast Chinese design, LED driver chip manufacturing, packaging and testing are part of the link Chinese IC industry chain in the market, but the application of LED driver chip is LED and downstream industry, lighting, display backlight application of combination. Based on this characteristic, in the promotion of Chinese and global green low-carbon economy under the LED in the downstream application industry vigorous development drive, China LED drive chip market even in the economic crisis, still achieved a steady growth. 2010, China's LED drive chip market reached a total size of nearly 1 billion 340 million yuan, an increase of 35.5%. 2007-2010, China LED driver chip market compound annual growth rate reached 30.3%, achieved against the market trend of rapid growth in the economic crisis, almost become Chinese IC market segments in the fastest growing. In the next five years, LED full color display and large size LCD backlight, LED landscape lighting, LED lamps, LED automotive lighting and general lighting LED downstream applications driven by strong, Chinese LED driver chip market will maintain rapid and stable growth trend. It is expected that by 2015, China's LED drive chip market size will reach 4 billion 530 million yuan. 2010-2015, China LED driver chip market CAGR will reach 28.9%.

Figure 32008-2015 China LED drive chip market size and forecast (by volume)

Source: CCID Consulting 2011, 02

(2) China LED display industry market structure is relatively mature, the largest industry, the largest amount of LED. Despite the low price of single chip LED display driver, but the use of supporting LED driver chip is very large, making China's LED display driver chip market accounted for 50.9% of the overall market share, ranked first. In 2010, the rapid recovery of notebook computer, communication terminal and the consumer electronics industry, the demand for LED backlight surge, coupled with the large size LCD TV LED backlight market launch and the rapid growth of consumption of high-end LED driver chip is also a substantial increase in 2010, the China LED backlight driver IC market size was second about 24.2% of the market share. Lighting LED driver chip market size of 260 million yuan, the market share of the top third.