LED packaging market 'be' layout price war imminent?

Days ago, high power LED packaging project Taiwan Luyang photoelectric investment of $100 million was officially settled in Nanchang high tech zone. So far, in addition to advanced electricity, Taiwan eight LED packaging giant have opened factories in the mainland. Although the rapid development of LED packaging market, but the market share has been controlled by foreign companies and Taiwan enterprises and other giants. It is understood that at present there are 1500 domestic packaging companies, with annual sales of more than 100 million yuan in the first camp has more than and 40 home sales in 10 million yuan to 100 million yuan between the second camp enterprises less than 400, accounting for about 30%, most of the enterprise sales of less than 10 million yuan. This is the Taiwan package of eight listed companies with an average sales of 1 billion yuan far.

Taiwan actively layout of domestic enterprises, technology and talent to seize the high-end packaging market in the country, while domestic packaging manufacturers are mostly concentrated in low-end small power products, homogenization serious. At present, a large number of domestic LED packaging enterprises to deal with market competition is one of the main means of low prices, some small businesses even at the expense of product quality.

Country star power (0 in the first quarter of this year's report shows, LED packaging products, integrated gross margin fell 9.52% to 22.97%. Report in the interpretation of changes in performance, said that due to the optimistic outlook for TOPLED, in order to expand market share, the initiative to lower the price, resulting in a decrease in gross profit margin. Xing Xing, general manager of the National Star Wang Sen said that the expansion of large enterprises, packaging industry competition, in order to cope with competition, the need for such adjustments.

"Now most companies are cutting corners, nor is the behavior of enterprises, but the market pressure. "The general manager of Dalian nineo-nine Technology Co., Shi Weili said publicly that the packaging enterprises gross profit decline in the market more and more pressure.

A quarterly Lehman photoelectric also showed that its net profit fell over 38.23%. One of the reasons for the report is the LED product market competition, product prices continued to decline.

With the strength of the active layout of Taiwan funded enterprises in the mainland, was originally in the low-end, homogenization of serious production and price war in the mainland LED packaging enterprises will usher in greater challenges.