From the price, technology, market perspective, the second half of the domestic LED industry trends

LED industry chain, including raw materials, equipment, upstream chip manufacturing, midstream LED packaging and downstream LED applications. The downstream LED applications are mainly divided into LED lighting, LED display and LED backlight applications, etc.. LED application is an important part of the whole industry chain to bring high added value.

Currently, the largest market in the downstream application of LED is the lighting field, followed by the backlight application and display. The scale of display applications still maintain a relatively stable growth trend, especially with small pitch LED display technology, LED display applications will gradually from the application to the indoor outdoor large size display, will significantly broaden the application field, the next few years is expected to maintain high growth rate, which makes the LED display in the downstream the application of industrial chain in the proportion gradually increased.

Analysis on the development of the whole industry chain in the middle and lower reaches of LED

Data show that in 2016 a quarter of China's LED industry output value reached 109 billion 700 million yuan, an increase of 23.1% year on year growth has accelerated.

Among them, the first quarter LED chip, LED packaging and LED applications were 3 billion 340 million yuan, respectively, $17 billion 620 million and $88 billion 730 million, an increase of 13%, respectively, an increase of 24.9%. LED growth and differentiation in the middle and lower reaches of the obvious, in which the upstream chip and midstream packaging growth below the industry average growth rate, the market price competition is still affected.

Price: LED chip prices will not be much change in the second half

Into 2016, by the weak international market demand, China's economic slowdown and other macroeconomic factors, the LED industry presents product homogeneity, price competition, mergers and acquisitions integration normalization and other characteristics.

2015 mainland LED chip manufacturers continue to release new capacity, the proportion of oversupply in the market as high as 20%.

The first quarter of 2016, affected by the adjustment of the production structure of inventory and chip enterprises, overall industry capacity utilization declined, and last year LED lighting chip price decreases, this year some enterprises half chip prices slightly callback trend.

Although the crystal power, such as Samsung and CREE international enterprises have made a selective decision to cut production, but the domestic HC semitek, Australia Shunchang and other companies have been in a state of full production, supply and demand pattern of the overall market is still not changed, is still in the state of pile up in excess of requirement. With the completion of the second half of the enterprise product structure adjustment and market demand, chip prices will remain stable overall.

In the first half of 2016, according to the dry blue photovoltaic Green Chip project put into operation in the second half of the company's blue chip production capacity will be gradually released.

The second half of 2016 Australia Shunchang two LED wafer and chip project will be completed, is expected to expand the production capacity of at least one times.

The second half of 2016 chip leader Sanan optoelectronics equity investment projects of Xiamen Sanan optoelectronics limited production is gradually released, the company has invested MOCVD equipment 28 Taiwan cavity (converted into 2 54 inch tablet machine is equivalent to 56), which in March 12 units into the cavity of the production capacity will be reflected in the two quarter, the remaining equipment will also be put into production as soon as possible. Production capacity will be further expanded.

In May 2016, the total investment of 6 billion yuan of LED epitaxial, chip and sapphire processing projects in Zhejiang Yiwu Industrial Park officially started the ceremony.

Technology: EMC packaging, CSP chip packaging trends

From the beginning of 2015, the packaging enterprise market competition further intensified, the company's net profit growth rate continues to decline, the company began to focus on LED packaging technology research and development and market development. With the maturity of LED lighting applications, since this year, the power LED market demand has risen sharply, LED packaging plant is actively imported into medium and high power EMC bracket.

EMC packaging devices from the past 2W based products are being infiltrated into the 2-5W products, coupled with the accelerated decline in prices, has been a threat to the traditional PPA bracket and ceramic substrates.

PHILPS, CREE, OSRAM, Samsung and other international giants have launched a LED flip chip and chip scale packaging products, domestic chip companies also intends to use the second half of this year amounts to 500 million yuan in the construction of LED chip package project, the second half of the more flip chip and chip scale packaging products will be introduced.

Market: market segments become a breakthrough

In the second half of 2016, small screen display, automotive lighting, plant lighting, UVLED and other new segments of the market will become the rapid development of the LED industry segments, and quickly become the focus of attention of the industry.

The first quarter of 2016 liard small pitch signed orders amounted to 284 million yuan, representing an increase of 155.86% over the same period last year; the first quarter LED Alto electronic display products export contract orders up to $19 million 400 thousand, more than the year 2015 LED display products export contract sum of order.

The first quarter of 2016 Florida signal contributions of net profit of about 10 million yuan (the first half of 2015 Florida signal net profit of only 9 million 950 thousand year-on-year growth). At the same time LED replace the traditional xenon lamp, halogen lamp head lamp market space is still great. Small spacing display, automotive lighting and other segments of the market prospects.

Industry: industrial chain integration to further accelerate

Chip manufacturing, packaging companies, product applications are still in the stage of rapid integration between enterprises.

The expansion of the investment boom brought with the pre LED lighting market is generally optimistic about the market, make the chip capacity expansion, the major chip enterprises through the integration of the LED in the middle and lower quality assets, improve the industrial chain, to further extend the business.

March 18, 2016, China can photoelectric announcement, the acquisition of Yiwu Rui