LED package "knockout" time is not differentiated or will break"

After years of development, China's LED packaging industry has matured. In recent years, LED packaging companies actively will be listed in the capital market and the continued growth in power demand downstream application industry, enterprise scale expansion speed, productivity growth, domestic LED packaging industry continues to expand the scale of domestic LED package in 2012 total output value reached 43 billion 800 million yuan, compared with 2011 growth of 53.68%, the output value reached in Guangdong province 32 billion 300 million yuan, up 57.56%, accounting for 73.74% of the gross output value of domestic LED package. And in 2013 China LED midstream package 47 billion 300 million yuan, an increase of 19%. 2014 is expected to reach $13 billion 390 million, an annual growth rate of 7%.

Domestic LED packaging industry output growth is mainly because the majority of international LED packaging manufacturers due to the high China domestic application market, have set up production bases in China, to increase sales to the domestic industry, and domestic companies to expand production capacity, investment capacity to be released to.

Current situation of domestic LED packaging enterprises

Currently there are more than 2000 domestic LED packaging enterprises, of which 2/3 in the Pearl River Delta region. The main business of calculating total 8 listed companies, including a semiconductor, Lehman optoelectronics, REFOND, Jufei, Mason technologies, honglitronic, nationstar, GoerTek, in addition to GoerTek, other 7 listed companies in Guangdong Province, Shenzhen region accounted for 5, Foshan and Guangzhou 1. At the same time, some large downstream application enterprises have set up their packaging production line, such as industrial group, Elec-Tech, KingSun etc.. In addition, the majority of packaging enterprises in China and abroad have set up production bases in China, the mainland of China has become the world's largest LED packaging production base in Taiwan.

After years of fierce competition, the domestic LED packaging market has matured. A number of domestic leading enterprises to enhance the competitiveness of the continuous expansion of the scale in the domestic market competitiveness and independent intellectual property rights is not weaker than foreign and Taiwan LED packaging enterprises. Simply on the packaging link, the domestic enterprises have been comparable to the strength of international LED companies.

The current mature packaging industry, all domestic LED packaging companies has not much difference in the aspect of technology, the only difference is the production capacity of enterprises, products between batch consistency and reliability of product difference. Along with the financial strength, technical strength of the manufacturers continue to expand the scale, increase investment in research and development, domestic LED packaging enterprises echelon will gradually forming small package, the survival space subject to certain compression.

LED packaging industry has been strong or weak, knockout need time

Everlight chairman Ye Yinfu said upstream of the LED epitaxial plant over the past two years in succession and the whole, and this year has reached a peak in the three canyuan. And this whole trend in 2014 will not be extended to the middle reaches of the packaging plant. His analysis, mainly because there are manufacturers, strong strong and weak is very weak, and not the whole mutual synergy; and packaging factory investment threshold is relatively low, unlike epitaxial plant capital intensive, so the small manufacturers next year will continue to exist, to wait for a period of time after the loss will gradually be eliminated.

In addition, technical standard package is also low, in recent years, Taiwan frequency dig talent, industry concerns Taiwan factory will soon be replaced.

Ye Yinfu optimistic that the entire LED industry to be competitive, it is in the upstream and downstream cooperation, not only the packaging section is good. He pointed out that ", the upstream epitaxial plant a lot, but not strong," the mainland packaging factory although there are rising trend, but the current connection limited to China lighting brands, international lighting manufacturers orders, or the main plant in taiwan.

Even the mainland's local TV brands such as Haier, Konka, Chong Wei, etc., with more than LED in Taiwan and South Korea, mainly the higher level of backlight technology.

Differentiated enterprises or there will be a way out

The existing packaging technology and technology is not enough to support the continued decline in costs, the need for revolutionary technological breakthroughs. The domestic LED packaging companies due to the small size, lack of funds and the lack of technical support upstream, the current research and development of new technologies tend to be conservative, generally in a wait-and-see period. In the short term, the price decline of LED packaging products will tend to ease, with the size of the effect of the upstream supply chain as well as the firm will have a comparative advantage in the competition.

But canyuan chairman Jane tomoto also said that LED products have technical advantages, can make different products. For example, canyuan next year there are three major products, can make a significant difference with the mainland epitaxial plant, including flip chip, high voltage LED, and free chip package. These new technologies because they do not need to wire and wire frame, or to be able to drive a IC to replace the entire power supply, greatly saving costs, gross profit is higher.