Who is in the LED industry "smile curve" both ends?

The properties of the LED industry are consistent with that of the silicon semiconductor industry. LED is a kind of compound semiconductor, and its technical model and business model are consistent with that of silicon semiconductor. Precisely because of the consistency of the industry attributes, the future development trend of the LED industry can be integrated circuit development path to deduce.

MOCVD industry is the commanding heights of the entire industry chain, MOCVD industry because of its high technical barriers, so the concentration is very high, the two companies on the monopoly of the global market share of nearly 90%. MOCVD industry on the impact of the industrial chain can see the impact of integrated circuit equipment on the industrial chain, the industry chain in the downstream industry market space and profitability will be affected by the progress of MOCVD technology progress. In this field, the future of Chinese enterprises to occupy a certain market share is still difficult.

LED chip manufacturing industry is in the growth stage of transition to maturity, is in the life cycle of LED chip manufacturing industry growth period to the mature period of transition, the industry will face in the future course of industry concentration to enhance competitive strength, at this stage the company will benefit. If we use the history of the history of the development of silicon diode industry, LED chip manufacturing industry once entered the mature period, the future of its earnings level will be closer to the industry average.

LED packaging industry in the future changes, semiconductor packaging technology is undergoing rapid changes, with the wafer level packaging technology in the field of LED applications, LED packaging industry market space will be squeezed. There will be a large number of enterprises in the future industry will exit, but we should not be pessimistic about the industry, many companies will actively choose the transition, there will be more investment opportunities.

At the other end of the smiling curve of the LED application industry LED industry chain, MOCVD is undoubtedly the left end of the smile curve, while the LED application industry due to customer resources in the right side of the smile curve. At present, LED applications are mainly in the backlight, display and lighting field, which is the most extensive lighting market space for the market generally optimistic. With the replacement of traditional LED lighting, lighting industry attributes will change, the industry's future concentration will be moderately improved, which provides a competitive and innovative capabilities of enterprises to speed up the development of opportunities.

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