LED industry chain ushered in a new round of price increases, white products are also expected to have room for price increases

Following the pre Taiwan crystal electric high price, in August 25th, LED announced the price hike leading small and medium size chip 10%, then, Mu Linsen, nationstar etc. RGB lamp also has the corresponding price, boosted by the recent LED sector rose.

Multi factor to promote LED prices

In March, Taiwan and other packaging enterprises Linsen crystal has raised prices for some products in the production of crystal electric until May 25%, prices rose 15%. Although there are some products of an optoelectronic small price, but the overall performance is relatively limited.

In August, three other chip companies prices are rising to varying degrees, including small and medium size three optical product prices go up 10%, HC semitek has also made the corresponding adjustment of low profit products; wood Linsen, nationstar on screen with RGB lamp price, rose about 5%.

Downstream demand is the key to success

On the one hand, LED small spacing of market demand, rapid increase of unit area, LED lamp lighting demand secondly, overseas permeability improved rapidly, and in October 1st 16 countries ban the import and sale of 15W and above the incandescent lamp, once again, the rise of special LED applications, including red, ultraviolet light, automotive lighting and so on, finally, seasonal industries the season also laid the foundation for the current price.

Cost is the most direct cause of price increases

Early fierce competition after the beginning of the material has reached the bottom of the rebound, including the substrate than in June to raise more than 30%, gold rose by more than 27% over the beginning of the year, as well as rising labor costs, etc..

Industry competitive structure is the cornerstone of price increases

LED industry competition in the past few years, the industry to production capacity significantly, the first half of the crystal itself has cut to boost prices, leading industry concentration significantly improved. According to industry chain research, follow the industry cycle is expected to continue.

The proportion of Chinese enterprises rose from 5% in 2009 to $25% in 2015. After a substantial adjustment in 2015, in 2016 the price pressure slowed down, the price decline of about 15-20 percentage points, significantly better than last year, at normal levels.

Small pitch LED strong demand, RGB products lead prices

Display applications accounted for 12% of the overall LED application

LED market applications including general lighting, landscape lighting, backlight, display, signal and display, automotive lighting, general lighting in which 45% of the share is still the largest application market, display accounted for about 12%, showing the trend of rapid growth.

LED long downstream applications

Interval reduction, a substantial increase in demand led

Small spacing between the LED display screen to enhance the most obvious, and presents the trend to upgrade. In a 2015 average of about P2.0, compared with 2014 median P2.5 products increased by 56%, lower, even lower than P1.0 products also emerge in an endless stream, interval will be further reduced. While the outdoor remote display products also have obvious reduction in size, it is expected that the P6.0 products will be popular, the demand increased by 178% compared with P1.0 lamp products.

Small market demand, the market began to grow rapidly during the year

Domestic display companies to maintain rapid growth, the rapid integration of industry practitioners, to promote the domestic market has improved significantly the quality of the enterprise. Small spacing products and technical difficulties, but also a better market concentration. Take the lead in the domestic market in the military, the government and other enterprises to achieve the first breakthrough in the market, and gradually to monitor, television news and other markets to expand, further decline in future costs, DLP, LCD replacement effect is more obvious.

During the year including the enterprise small spacing of outstanding domestic Riyadh, Chau Ming technology and actively expand overseas markets, at the same time, Samsung, SONY, MITSUBISHI, NEC and other overseas brands also promote small pitch products, double flag, small pitch products appear rapid growth overseas. Demand growth is small, the price of the chip spacing beads enhance the important support.

Chip encapsulation technology, supply, supply is relatively concentrated, such as three crystal power, as the main chip suppliers, Everlight, nationstar, Linsen beads package is the main business, the first to start price. LED display industry chain, especially the small pitch products industry chain will significantly benefit, including chip, packaging companies benefit price upward, LED display industry benefited from the economic development, some companies such as Sanan optoelectronics, Huacan, light, dry nationstar, LED chip and package Linsen enterprises, Chau Ming technology, Riyadh, and Abison LED small spacing enterprises.

The domestic supply enterprises shrinking fast display

The LED display market growth

White products are also expected to have room for price increases

Lighting supply and demand continues to improve

Domestic enterprises to enhance the quality of the rapid increase. Chinese enterprises accounted for 5% from 2009 to rise to 25% in 2015, the global market share of high quality enterprises such as sunshine lighting is expected to reach nearly 3 percentage points in 2016.

Domestic LED enterprise integration is more obvious, of which LED from more than 20 thousand in 2014, down to 16000, the adjustment will also be expected to reach the size of the year 2018 by 10000.

"China's LED company

LED entered the consolidation phase, particularly in 2015

In 2015, PHILPS opened LED product price surge, followed by FSL, OPPLE, Linsen lighting and other lighting giants also have joined, the year prices fell more than 30%, to accelerate the industry adjustment. Giant also ushered in a dramatic adjustment, OSRAM FSL shares, PHILPS