Mainland LED chip industry investment fever resurgence?

Since 2012, compared to the previous two years of crazy investment, LED chip industry to enter the low investment stage of rational investment, the main reason for the chip overcapacity caused by various consequences. According to the observations of LEDinside, 2012, LED chip added only 2 projects, respectively, HC semitek Suzhou project and Xi'an Shenguang Hao Rui optoelectronics, HC semitek Suzhou project planning investment of 1 billion 800 million, Xi'an SG Hao Rui optoelectronics planning investment of 598 million, LED, the upstream chip industry investment boom retreat. Since entering in 2013, due to the emergence of the industry boom signs of recovery, some of which had been postponed indefinitely chip project was put on the agenda, LED chip industry investment fever signs. Industry boom callback in the first quarter of 2013, LED chip industry boom callback obvious. In the year 1Q12 prices fell sharply under the condition of 5 listed LED chip companies, of which 4 1Q2013 revenue growth, revenue only decreased HC semitek also said that the 1Q13 chip shipments increased more than 1Q2012. The Chinese can be involved in the new machine is still in the commissioning phase, the full release still takes time.

Table 1 13Q1, the main LED chip enterprise revenue (100 million yuan) data source: LEDinside note: corporate earnings, revenue refers to all business listed companies business receipt LEDinside survey found that 1Q13, the lighting market demand, LED white chip market demand a sharp increase in power chips once out of stock. The chip manufacturer equipment utilization rate increased, Elec-Tech 1 quarterly disclosure of its 80 MOCVD, of which 45 units have started production, according to LEDinside, the latest boot number has nearly 60 units, the operation rate of 75%; Wuhu Sanan optoelectronics base MOCVD equipment units also reached 98 units, more than 9 operating rate. Enterprises to regain the chip project since 2010, China's LED chip industry set off a hot investment. According to LEDinside statistics, in 2010 the mainland added a total of 27 LED chip project, in 2011 added 18. However, due to the excess capacity of the chip lead to deterioration in market competition, chip prices continue to decline, corporate profits decline. Therefore, many new projects have not been much progress, some projects have even been completely out of. In 2013, the market boom has signs of recovery, although the chip overcapacity problem still, but part of the "dormant" chip project is back on the agenda.

In Figure 1, since 2013 LED epitaxial chip investment project source: LEDinside finishing 1 Silan Chengdu project on schedule in February 8th, Silan issued a "non-public offering plan", the company intends to 4.19 yuan price to certain non-public offering of not more than 170 million shares, raising a total of not more than 880 million yuan, for Chengdu Silan Semiconductor Manufacturing Co. Ltd. project and supplement working capital. Chengdu Silan Semiconductor Manufacturing Co. Ltd. projects a total investment of about 1 billion yuan, including the use of proceeds of about 700 million yuan, the project product is a product LED chip and power module, power device for lighting. The plan has received the Commission by April 24th, and in May 27th Silan approved non-public offering of 170 million shares, the closing price of 6.61 yuan estimated the amount of financing will be not less than 1 billion.

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