LED industry competition will stabilize, industry oligopoly formation

The difference in the sensor industry high technology threshold, LED industry technical threshold is low, so more and more enterprises to enter the industry, the same year and eventually led to the photovoltaic industry -- overcapacity is serious, the price war between enterprises. After a reshuffle, many companies closed down.

Recently, the reporter learned that, LED chip in 2012 to years in the past three years, the price dropped to the original 1/10. However, the current chip prices remain at around 200 yuan, the competition between enterprises has stabilized.

It is worth mentioning that the government level LED subsidies to enterprises, make a lot of enterprises to enter the industry's purpose is not to develop LED, but for subsidies, this is also one of the reasons leading industry overcapacity.

HC semitek President Liu Rong said that with the competition in the industry tends to be stable, will eventually form a few companies alone, the level of government subsidies will be tight, for those who will participate in the international competition in business subsidies, and those who can not get subsidies, will be in the next round of the competition to gradually withdraw from the stage.

Industry competition tends to be stable

As a leading supplier of LED chips, China has become the world's second largest LED epitaxial film manufacturer, one of the world's major LED epitaxial film manufacturers.

LED industry in 2000, experienced a rapid development, HC semitek, optoelectronics and other LED companies also take the industry development in the East, from the original small enterprises, developed into today's LED listed companies. Due to the low technical threshold of the LED industry, but also makes a lot of money into the industry, and ultimately led to the same year as the PV industry, the formation of overcapacity situation.

In order to break through, the price war between enterprises began to disorderly competition, which reached its peak in 2015. Among them, as the LED chip industry, also experienced a price war competition, the industry has undergone another round of reshuffle. This reporter has learned that the current domestic LED chip companies in the normal operation of about 15, which is from the 2010 50, after the price war reshuffle the remaining enterprises.

Liu Rong said, LED chip prices over the past three years has dropped 10 times, although there is a decline in the cost, but the price decline compared to is not enough, so the LED enterprise alike, "from 50% to 60% of the gross margin in the first quarter of this year, almost no profit, now each piece of the price of 200 yuan, there are some profit space. "

In Liu Rong seems, LED industry competition will continue, but this competition will tend to be stable, because there is no room for price war between enterprises. In this chip, Sanan optoelectronics, HC semitek and other companies are in the expansion, but the amount is not large, the expansion could lead to overcapacity, but the possibility of a few years ago the price is out of order.

Oligopoly will form

A LED industry researcher said, LED industry's current competition, has been disorderly competition from the previous, the development of the current orderly competition, the price space has been reduced to a minimum. Although there may be price competition, but will not bid. Now there are fewer and fewer capital out of the enterprise. "

In the global economic downturn and the macro LED backlight and display demand, Sanan optoelectronics, HC semitek, changelight, Australia Shunchang enterprises such as chip production capacity expansion trend, further exacerbating the LED chip market competition, chip manufacturers price war intensified, and the whole industry will continue. In addition, LED lighting demand growth slowed significantly, industry competition intensified, as the LED lighting industry chain upstream of the pressure on the chip face.

At present, there are 15 domestic LED chip companies, but this is not the final market structure, the reshuffle will continue. Liu Rong said, although the price war has little room to cut, but this price competition will continue, the 15 companies after the next round of reshuffle, the final may be left about 5, more concentrated. "

Liu Rong said further analysis, "at present in the first row is an optoelectronic, accounted for 30 percent, US second, accounting for 10%. Three years after the formation of the two largest, accounting for about 70% of the market share, our share may be at about 30%, the proportion of the first or in about 40%. "

Government subsidies or tightening

As an emerging industry, the rapid development of the LED industry, government subsidies played an important role.

Public information, China from 2009 on the LED lighting industry subsidies, subsidies range. By 2013, LED industry ushered in the policy of spring, from the State Council to local governments have introduced policies to promote the LED industry. At present, government subsidies still account for half of the company's performance.

Liu Rong said, from the two point of view of government subsidies, from a national perspective, in the early development of the industry, government subsidies is to promote the development of the industry better. However, from the individual enterprise is painful, since the country has so much money out of subsidies, the main body involved in a lot of competition, the market can not carry so many subjects, the competition will be very cruel elimination. And after the competition of the remaining enterprises, the cost and management advantages will be highlighted. "

In the industry view, after a round of reshuffle, the object of government subsidies will change, no longer as before all subsidies, subsidies will be