The LED industry is big but not strong competitive profit unstable pending essay

Government policy guidance and tilt, is often an important factor in the development of a strong industry. For semiconductor lighting (LED) industry, the same.

Said the Vice Minister of the Ministry of Su Bo held in the days before the third session of the green industry conference, from five aspects to accelerate the development of energy-saving environmental protection industry, promote the development of green industry, promote the semiconductor lighting industry has become one of the important items.

In early November, Cao Jianlin, Vice Minister of science and technology, said that in the past ten years, China's rapid development in the field of semiconductor lighting, has become one of the world's semiconductor lighting R & D and production center.

The fear of glossy data

According to statistics, is expected in the fourth quarter of this year, the overall output value of the LED industry will grow by about 20%, the total size of the industry for the year more than 260 billion yuan, an increase of 28%. The annual output of LED indoor lighting will grow 110%. It is expected that next year, although the output value of LED indoor lighting base increased year by year, but the growth rate will remain at around 60%.

Behind the rapid development, quality improvement is still a major problem in the industry. Crystal Electronics (Guangzhou) Co., Ltd. managing director Xiao Guowei said, China, LED epitaxy, chip production has a certain size, which is reflected in the installed capacity, MOCVD capacity, LED chip manufacturing scale and so on. "But there is still a certain gap between the quality of the products and the technical standards and the international ones. How to achieve quality improvement in the future development, rather than just the amount of accumulation, will be one of the core issues in the development of China's LED chip field. "

In addition, behind a series of beautiful data, the industry does not increase profits increase the problem is still outstanding. In 2013, although a lot of business orders, revenue growth, but the price war fierce, corporate profits increasingly thin.

Data show that Shanghai million LED industry 20 listed companies in the first three quarters of this year achieved a total revenue of 14 billion 195 million yuan, 11 billion 811 million yuan more than 20% growth in the first three quarters of last year; net profit attributable to shareholders of the parent company was 1 billion 687 million yuan, 1 billion 590 million yuan more than 6% growth in the first three quarters of last year, profit growth rate was significantly lower than revenue growth.

In this regard, the industry generally believe that the price war, the increase in the cost of government subsidies and other LED is not an important reason for the increase in income does not increase profits.

This is not the stage of making money

For the real situation of the competition in the industry, the crystal ingot morning photoelectric (Shenzhen) Limited company deputy general manager Wang Junbo said, "at present, the LED chip overcapacity is a foregone conclusion, the trend of price stumble endlessly, so that the chip industry entered a low profit or no profit era. "

In this regard, Wang Junbo is very calm, he said when the industry began to slowly from the outbreak period to the period of maturity when the number of competitors will become less, because people will be eliminated, in the process of killing, some profit, only to industry development will have relatively mature stable profit.

Over the past two years, LED industry overcapacity serious, frequent collapse of the tide. Earlier this year, with the opening of the LED lighting market, the whole industry chain are thriving. Despite the sharp increase in orders in the hands of the enterprise, but the intense price war almost runs through the whole industry chain downstream.

For the upper reaches of the industry, in 2013 the domestic chip manufacturers to chip prices down to 20% to 30% in the past, this data is only Chinese enterprises to complete. Industry insiders smile road.

For the middle reaches of the packaging manufacturers, although the downstream LED lighting market this year, the rapid start to bring huge orders, but the price competition between peers is still very tragic. Downstream manufacturers do not have any loyalty at all, so the price of doing things grab customers everywhere. A packaging manufacturers expressed frustration.

Downstream LED lighting applications equally fierce competition. Due to the task of energy saving and emission reduction as well as overseas markets especially the European indoor lighting market, the domestic LED lighting production enterprises in engineering lighting and indoor lighting in the field of competition has reached a white hot at the same time, due to the low technology threshold, some lay enterprises have entered the market, new entrants tend to seize the market with low price strategy.

Industrial integration imperative

From the beginning of the second quarter of 2013, the sluggish state of LED industry appeared a good momentum of recovery to pick up, the enterprises have also taken advantage of the opportunity strategy to counterattack, and industry consolidation plan again into development planning in a number of manufacturers. In the view of Chongqing four Photoelectric Technology Co. Ltd. director Yunchuan Tuo, 2013 LED lighting market outbreak situation has exceeded the average value of previous years, and the next three to five years, the explosive growth trend will continue.

Data show that as of 2013, the domestic enterprise is about 51 LED upstream, midstream packaging enterprises have 1750, the number of downstream applications up to 15000 companies, industry concentration, there is no domestic manufacturers to share more than 5%.

In fact, this year, some companies have started to integrate the enterprise strategy. The acquisition of NVC, the industrial chain upstream and downstream vertical integration; an optoelectronic intends to acquire Taiwan canyuan photoelectric and America lumens, it will have both vertical integration and horizontal integration. Recently, Riyadh announced the acquisition of JINDA lighting, hopes to use the technology advantage, the latter project experience, channel resources and customer resources, accelerate the company's LED lighting business board