How does China's LED industry pattern analyze how the company will respond to the market that is about to blow out?

In 2012, domestic LED lighting companies developed strongly. With the expansion of production scale, enterprises pay more attention to the quality and brand of products. In addition to a large number of OEM products in export products, the export of self-owned brands has shown a significant growth trend in recent years.

Judging from the export situation, the domestic and international economic situation has not been optimistic since 2012, but the export growth of LED lighting products is around 40%. Chen Yansheng, chairman of China's semiconductor lighting/LED industry and application alliance, told reporters that LED lighting is the future direction of the lighting industry, but for a long time, traditional lighting products, especially high-efficiency lighting products will coexist with LEDs, and LEDs The share will increase year by year.

From the upstream of the most technical LED lighting industry chain, although the operating rate of epitaxial chip enterprises is only 50%, some MOCVD equipments have not been commissioned after import, or have not been put into production due to oversupply in the market after commissioning, but there are also many independent Technological breakthroughs in intellectual property. The industrialization result of the North Microelectronics "Development and Industrialization of High-capacity High-brightness LED Etching Machine" project ELEDE330ICP etching machine, as a domestic high-end process equipment with complete independent intellectual property rights, has gained more than 50% market share. Sanan Optoelectronics' S-45FBFUPGaN-based LED high-power blue chip, the white light efficiency after packaging can reach 120lm/W, the performance index is much higher than the national light-effect requirement of street lamp 100lm/W. Inspur Huaguang "reverse polarity red LED technology" goes further in the original technological innovations, the comprehensive indicators have reached the international advanced level, and has achieved full mass production; its street lamps will be undertaken by the blue high-power LED chips. The results of the major special projects of the “Semiconductor Lighting Project” of the “863” 863 Program were successfully transformed into products, and the white light efficacy after packaging reached 130 lm/W or more.

In the midstream of the industrial chain, packaging companies are also underemployed due to supply and demand. Some packaging companies are developing downstream, engaged in the development and production of lighting products, and are invested in the production of LED lighting products. In the downstream of the industrial chain, enterprises engaged in LED lighting products face the terminal market. Only a few companies with orders and stable product quality have been relatively stable, and the situation of the strong and strong has not changed. It is worth mentioning that the LED magnetic cold street lamp newly developed by Lehman Optoelectronics not only has the modules interchangeable, but also has a revolutionary improvement in the heat dissipation method, and the weight is only 60% of the traditional LED street lamps. At present, the product has entered the stage of mass production and has been applied in multiple sections.

In terms of industrial policies, national and local governments have given great support to the development of LED lighting. The National Development and Reform Commission and the Ministry of Finance's LED lighting financial subsidy project will greatly promote the application of LED lighting in the domestic market. In addition, Guangdong Province has signed contracts with various cities, and plans to change all public lighting to LED lighting within three years. It is planned to adopt the EMC model. Currently, cities are formulating work plans.

So how should domestic LED companies respond to the market that is about to blow out? Chen Yansheng, chairman of China Semiconductor Lighting/LED Industry and Application Alliance, said: First, we must give full play to our advantages, stick to superior products in the traditional lighting field, and adjust product structure according to market changes. Second, we must pay close attention to the changes in the LED lighting market, and focus on LED lighting as a focus for future development, and strengthen market research and information feedback. From research and development to large-scale production, we are ready to scale production. Third, we must combine government bidding projects with market operations, and pay attention to both domestic and foreign markets while paying attention to government bidding projects.

Display pattern faces major adjustments

“The LED display industry will face major adjustments.” Guan Jizhen, vice chairman of the China Optical Optoelectronics Industry Association and chairman of the LED Display Application Branch, said: “The industry will be responsible for resource allocation, factor restructuring and market under the leadership of key enterprises and listed companies. Adjustment."

At present, the overall development of China's LED display application industry has reached a certain scale, the core key technology development is relatively mature and has formed standardized and serialized products. The overall quality and reliability of products have been significantly improved, specialized division of labor and business cooperation mode. universal. Although the product application field continues to expand, the market growth rate has slowed down. Large-scale enterprises in the industry have grown rapidly, and influential brand enterprises have developed rapidly, forming a number of large-scale enterprises with strong comprehensive strength.

According to GLII, the LED display market in 2012 increased by about 10% year-on-year to reach RMB 24.1 billion. Among them, the market size of full-color LED display increased by 15% to 20% year-on-year, and shipments increased by more than 30% year-on-year. Even so, the current LED display industry is still showing a lot of situation, and fierce competition has forced manufacturers to actively cut prices to compete for orders.

In 2012, the domestic LED display market showed a situation in which sales volume and price cycle were promoted. The price drop caused the sales volume to increase rapidly. The economies of scale brought by the increase in sales volume further contributed to the price drop. The annual LED display price dropped by about 15%. ~20%. However, the current domestic LED display industry competition is still in the early stage of product competition. The key competitive indicators are reflected in the price, quality, delivery period, after-sales service, etc. At this stage, the price elements are the most prominent. Therefore, LED display companies have a big price war, and large manufacturers with strength hope to eliminate some small and medium-sized manufacturers through price wars. However, the price war has greatly affected the revenue performance of LED display manufacturers. It is expected that at least 30% of manufacturers' revenues will fall back in 2012.

"The LED display industry will face major adjustments." Guan Jizhen, vice chairman of the China Optical Optoelectronics Industry Association and director of the LED Display Application Branch, said in an interview with the China Electronics News that "the industry will be in key enterprises and listed companies." Leading resource allocation, factor restructuring and market adjustment."

In the LED industry chain, the leading manufacturers of LED devices and the backbone manufacturers of display products may redefine the division of labor between upstream and downstream industries, highlighting the specialized division of labor and collaboration. Guan Jizhen said that in the LED display application industry, the enterprise groups within the industry will be properly classified, and gradually form a technology development enterprise based on key control system technology research and development, and a product manufacturing enterprise based on large-scale and standardized production. A market-oriented technology-service-oriented enterprise, a professional application-oriented enterprise that meets the needs of the professional market.

LED chip excess relief

In 1962, American scientist Nick Holenak invented the first LED. In 2012, when LED celebrated its 50th anniversary, He Lunak believes that the LED industry has developed to today, and its technology and application are still in an immature period of rapid development. From the "Twelfth Five-Year Plan" of the country, to the investment fever caused by policy subsidies, to the LED enterprise vision light electronic collapse, the NVC lighting storm, and the Foshan lighting trading insider events, the LED industry has experienced Not calm 2012.

2012 is the most difficult year for China's LED chip industry. The production capacity is seriously oversupplied and the price continues to fall to become the industry's keynote. According to GLII data, as of the end of November 2012, the number of domestic mass production MOCVD equipment was 909, of which 106 were added in 2012, which is only 1/5 of the number added in 2011. At the same time, the new machines that were signed in 2012 were mostly orders that were signed in the past few years, and they are now basically in line.

In 2010 and 2011, China introduced a total of 680 MOCVD equipment.

After more than a year, some machines were put into production. However, the actual market demand is far from expected, and most of the machines failed to put into production on time. The domestic 909 MOCVD has an average yield of less than 60% and a capacity utilization rate of only 30%.

The data shows that domestic LED chip companies are mainly small-scale, and the proportion of MOCVD companies under 20 units is 75%. For these SMEs, the shortage of funds is the most pressing issue currently facing. Many SMEs have the same technological innovation capability as large-scale enterprises, but they lack the financing ability. Such enterprises will be the main target of large-scale mergers and acquisitions. For companies that have no financial support and limited technical strength, they will completely withdraw from the LED chip industry.

It is expected that there will be a large increase in the demand for LED chips in 2013. At the same time, the domestic chip industry will usher in large-scale mergers and acquisitions and exits. Therefore, the problem of overcapacity of LED chips will be alleviated to some extent. Profitability will also be improved.


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