Leveraging brand TV mainland LED backlight packaging industry rise

August 6th, Ruifeng photoelectric semi annual report released in 2013. The report shows that Ruifeng photoelectric 1H2013 operating income of 294 million yuan, an increase of 67%. One of the large-size backlight LED revenue 135 million yuan, an increase of 113%, the new small and medium size backlight LED business revenue also exceeded 10 million. As a representative of large size LED backlight packaging manufacturers in the mainland, Ruifeng photoelectric performance and achieve rapid growth.

July 5th, as a representative of the mainland small size LED backlight packaging manufacturers, poly fly photoelectric released 1H2013 results notice, net profit attributable to shareholders of listed companies grew by 25-55%.

Backlight is still the largest application area of LED, the global LED backlight packaging manufacturers are mainly concentrated in Taiwan and Japan, South Korea and other countries. Due to the high threshold of LED backlight packaging technology, mainland manufacturers involved in more difficult, especially in the field of large-size backlight, only a small number of domestic packaging manufacturers have the ability to produce, but the market share has been very small.

However, with the continuous improvement of the technology of mainland enterprises, this situation has been greatly improved, the mainland LED backlight packaging industry in 2012 has shown a rising momentum. To Ruifeng, poly fly, Chi Chi and Dongshan precision as the representative of the performance of LED backlight packaging manufacturers increased, while in contrast to Taiwan manufacturers, backlight performance is gradually eroded.

Mainland manufacturers LED backlight performance rose

Figure 1 mainland and Taiwan, the main LED backlight packaging manufacturers performance comparison (100 million yuan)

Data sources: corporate earnings, LEDinside finishing

2012, Ruifeng total revenues of 500 million yuan, an increase of 72%, of which LED backlight device revenue of $290 million, an increase of 169%. Poly photovoltaic LED backlight device revenue 420 million, an increase of 37%. Siu Chi shares, Dongshan precision LED main production of LED backlight devices and modules, the results were doubled. In contrast, Taiwan manufacturers, in addition to the East Bay, other manufacturers revenues are down.

Compared with a few years ago, the mainland manufacturers LED backlight packaging technology can be greatly improved, although the overall level is still a certain distance from Taiwan or international manufacturers, but has been gradually accepted by China enterprises. In particular, the small size of the backlight used in smart phones, the higher the cost of domestic second-line or even the first line of mobile phone manufacturers favor. In addition, in the field of large size LED backlight, according to the LEDinside survey, the domestic TV manufacturers began to use about large size LED backlight device made in the 2 quarter of 2012, 6 TV makers, but Hisense still a large area of domestic LED by other manufacturers have introduced LED backlight device, packaging factory, and gradually the trend of expansion application proportion.

Figure 2 Mainland major TV factory backlight LED or module suppliers

Source: LEDinside

The gap in the performance of the product continues to narrow, manufacturing cost advantages, resulting in the mainland LED backlight device price ratio continues to improve, slowly replacing the Taiwan region or Japan and South Korea and other international manufacturers market share. LED backlight market demand is close to saturation, there will be no more new market every year, but the mainland LED backlight packaging manufacturers, there is still a chance to replace. As can be seen from Figure 1, the overall revenue of mainland manufacturers is far less than Taiwan manufacturers, in addition to Japan and South Korea manufacturers, alternative market still has a larger space. Therefore, the mainland LED packaging manufacturers have said they want to enter the field of LED backlight or expand capacity.

Lu continued to actively expand LED backlight capacity

Table 1 mainland LED backlight manufacturers dynamics

Source: LEDinside finishing

In July 16, 2013, REFOND announced, intends to TCL group, Taiwan canyuan photoelectric "subsidiary" Yuxing enterprise "will jointly invested 200 million yuan to set up a joint venture of LED company in Guangdong province Huizhou City Zhongkai high tech development zone. A new company called "Huarui photoelectric technology (Huizhou) Co., Ltd., registered capital of 200 million yuan. Among them, TCL Group invested 102 million yuan, holding 51%; REFOND invested 50 million yuan, 25% shares; Yuxing enterprises invested 48 million yuan, 24% shares. Canyuan is the LED backlight chip suppliers, REFOND is manufacturer of LED backlight device, and TCL is the LED backlight device consumption business. Thus, LED backlight device for Huarui photoelectric technology (Huizhou) Co. Ltd. is one of the main business.

In fact, at the beginning of July, REFOND just announced plans to invest 183 million yuan of its own funds for the SMD LED expansion project, so as to further enhance the company's overall strength in the LED packaging industry, consolidate and highlight the company's leading position in the large size LCD backlight and LED lighting LED Market segments, including LED back light planning the new capacity is 504KK.

Dongshan precision, Siu Chi shares have expanded production LED backlight packaging production line, honglitronic, Mason technologies, Guangzhou crystal, the LED backlight as the future focus on the development direction of one, also have increased in LED backlight packaging production line.

Mainland China is the future television, mobile phones, notebooks and other products of the world's major production base, is the main base of LED backlight devices. LED backlight device manufacturers products in mainland China and Taiwan region and the performance of international manufacturers continued to narrow the gap, the price rising, the future, LED backlight packaging manufacturers to replace Taiwan or international manufacturers will be an irreversible trend. For Japan and South Korea and other manufacturers, in the patent protection will still have a certain market; and for the Taiwan LED backlight packaging manufacturers, the upstream and onshore plant resources, downstream