2017 LED core layout brings a new situation

The domestic LED chip market will be up to 5-10 remaining enterprises. Look that is still too optimistic, and the LED chip business requirements, but "Eighteen swordsmen like Wu Yi".

Fight scale and price has been an important means to promote the development of domestic LED chip companies. But in excess capacity and price bottomed out, the above approach is clearly easy to fail. At this time, "the poor are changed, change the pass". The current LED chip industry has reached a critical moment of transition, chip companies want to grow stronger must change ideas, from the scale of production changes to the diversification of the layout, strengthening technology, improve profit margins, and strengthen their ability to resist risks.

Industry boom continued to improve

Over the past few years, due to the LED chip industry to increase the size of the investment capacity of the new release led to a sharp decline in prices. At the same time, in order to compete for market dominance, the market price of the state of irrational competition so that a lot of small and medium chip manufacturers are facing a sustained decline in product prices continue to cause losses.

Data show that in 2015 China LED chip price decline reached 30% - 40%, the upstream epitaxial chip output rose only 8.3%, the output value of 13 billion yuan, the growth rate is slowing down. Intense market competition will be small and medium LED epitaxial chip companies gradually out of the market to further enhance the degree of concentration, the industry's top five chip companies accounted for revenues of up to 65%. Sanan optoelectronics, HC semitek, changelight, Tongfang, Elec-Tech, chip manufacturers accounted for nearly 7 of the domestic market share.

In 2015 after the industry reshuffle, coupled with the beginning of crystal electric capacity, shutting down 25% times this year, Samsung production, domestic chip companies subsidies shrinking, leading to expansion of domestic chip new supply fell sharply, but also changed the LED chip structure of supply and demand in a certain degree, before the balance between supply and demand and supply change to pile up in excess of requirement.

Since the second quarter of this year, LED chip companies have continued to pick up momentum, the industry began to pick up a number of LED chip business, revenue significantly improved. From the recent three quarterly disclosure, Sanan optoelectronics before the three quarter operating income of 4 billion 486 million yuan, an increase of 24.55%, net profit of 1 billion 496 million yuan, an increase of 3.39%. Hua photoelectric 1 2016 - September operating income of 1 billion 71 million yuan, an increase of 53.22%, net profit of $141 million, an increase of 1478.77%.

Chip companies not only improved profitability, and its production capacity is also full of the industry boom is rising, the status quo. LED chip, three leading Huacan, Australia and many other LED chip companies are full or close to full production.

In October 19th, the Shanghai Stock Exchange said Sanan Optoelectronics in Shanghai E interactive in answer to questions from investors, the company equipment report MOCVD mid to end all in full production, the company orders a monthly order and quarter orders, orders have been booked to the end of the quarter. At present, the price of LED chip is stable, the price of some varieties has increased. An optoelectronic 2016 semi annual report, the company has about 276 sets of MOCVD equipment (converted into 2 inch 54 machine), has been put into production in 256 sets, of which about 80 sets of the reporting period gradually opened.

EPISTAR also said that the four yuan LED demand is still strong, and expected LED backlight applications will enter the off-season in the fourth quarter, but South Korea and mainland customer orders still influx, coupled with the demand for intelligent mobile phone flash synchronous growth, October challenge of full capacity, is expected to drive the fourth quarter operating better than expected.

The first half of the year and HC semitek with major customers M.L.S. signed a strategic cooperation agreement, will include Linsen under the same conditions to give priority to purchase the company's products in the next 3 years, our LED chip products from the company's purchase value of the amount of not less than 1 billion 500 million yuan.

Insiders said that this demand by the end of LED applications to promote the rapid growth of the chip market will continue for 35 years. One of the reasons is because the October 1st domestic "cut Bering" fully implemented, prompting LED to further accelerate the lighting will replace the incandescent, and then pull the 60% domestic LED lighting demand; on the other hand is due to indoor and outdoor small spacing LED market continued hot, compound annual growth of 28%, 2016 for about 140000000000, each of the next two years will continue there is a new demand of nearly 40 billion, while the small spacing of LED capacity in about 70 billion, the gap between supply and demand reached 50%.

Adjust the layout of the structure of the enterprise diversification

In view of the market downturn in 2015, from the beginning of the fourth quarter of last year, the largest electricity in the history of the history of the largest production cuts, freezing 25% production capacity, the operation of the Blu ray MOCVD machine from the unit to the current 375 units. This year should be four yuan LED, crystal electric expansion plan started from the second season, even if the new production capacity has been released, is still inadequate, the current four yuan machine reached 47 units, 13 sets of planning revision of crystal electric old blue machine turned into four yuan LED. In addition, the crystal is also committed to LED filament lamp, infrared LED, UVLED and other fields, and actively explore overseas markets.

Under the leadership of crystal electricity, Taiwan funded chip companies set off a tide of transformation. Arima decided to completely withdraw from the battlefield turned blue and green, resources, the machine will turn into the four yuan LED, the weight of the iris recognition chip, stage lighting market, is the first cross-strait bold blue and green LED market, seeking to discard the transformation of LED plant.

The new century will be green LED in the application of wearable devices, mobile phone flash (Fu Jing), CSP applications such as car headlights, special lighting