LED package: the integration of the industry chain to improve the wave

With domestic enterprises swarmed, LED industry oversupply, prices fell, the decline in gross margin, the overall slowdown is becoming increasingly prominent. When the industry is in a period of adjustment, the scale, the financial strength of the leading enterprises began to carry out the integration of the whole industry chain, enhance their competitiveness.

Once upon a time, China's Taiwan packaging output accounted for more than 60% of the world's output. However, with the increasingly competitive advantage of LED packaging enterprises in mainland China in recent years, China has gradually become the world's LED packaging center. At present, the domestic LED packaging center is mainly distributed in the Pearl River Delta, Yangtze River Delta and Fujian. The Pearl River Delta region LED packaging enterprises more than 2/3 of the country, accounting for about LED of the total packaging enterprises in the country of 68%.

Although from the production point of view, the mainland still has a large gap with the packaging enterprises in Taiwan, but the mainland is increasing the proportion of packaging enterprises. In the international LED packaging business revenue is declining, while the domestic packaging business revenue has maintained a growth of 20%~30%.

In the past year, the decline in the price of chips in the middle and lower reaches of the LED industry chain cost, but a lot of LED packaging companies in the expansion of the internal industry chain. Improve the industrial chain, opened on the middle and lower reaches of the river, enterprises not only established channels, and maximize the profit of the whole industry chain at the same time, the internal integration will also carry out the external foundation after merger.

In 2009, the country star power and American LED enterprises SemiLEDs jointly set up XURUI photoelectricity, again in 2010 and the other shareholders with the company set up star semiconductor technology in Foshan, these are in high power LED epitaxial chips spoils. Honglitronic [14.96 2.75% shares research report] since the beginning of 2008 small batch production of automobile signal and lighting products. In addition, the Lehman photoelectric [15.83 1.67% shares it research report] also completed the package from the LED device to high-end LED display and LED lighting energy-saving products across the industry chain.

National Star photoelectric secret party loyalty, told reporters: every year in October ~12 month is the peak season for home appliance sales, and last year, but suffered a 'busy season is not prosperous'. To the household electrical appliance industry to provide LED display module of the National Star photoelectric this feeling is very clear, the company's gross margin has dropped from 32% in 2010 to about $20% in 2011. He believes that in 2011, there are many LED packaging companies desperately struggling, but in 2012 entered the period of excess phase, some enterprises will shuffle eliminated.