LED industry continues to improve the development of the industry chain to speed up the integration process

Review: outlook for the second quarter of 2014, is expected to accelerate the layout of LED lighting products with international and domestic applications, as well as to further accelerate the pace of elimination of incandescent lamps, will drive the rapid penetration of LED lighting demand.

Industry continued to improve

Accelerate the integration process of industrial chain

The second quarter of 2014, will optimize the chip and other capacity utilization, improve domestic LED backlight market share, accelerate the integration of industrial chain. Overall, steady trend, the development of China's LED industry will continue in the first quarter of 2014 second quarter continued to improve, especially with the development prospects are more optimistic in chips, raw materials, industry applications, specifically in the following three aspects: on the chip and raw material production can continue to release at the same time, the rate will be further optimization of capacity utilization.

Looking forward to the second quarter of 2014, is expected to accelerate the layout of LED lighting products with international and domestic applications, as well as to further accelerate the pace of elimination of incandescent lamps, will drive the rapid penetration of LED lighting demand. Overall, the second quarter of 2014 LED chip capacity utilization will be further improved, is expected to reach more than 90%. Therefore, it is inferred that this will stimulate the continued increase in the demand for key raw materials such as sapphire and Mo substrates LED. Domestic LED backlight market share will further enhance. By the end of 2013, the proportion of domestic backlight worldwide has grown from less than 10% to less than 20%.

LED industry continues to improve the development of the industry chain to speed up the integration process

Outlook 2014 full year, the proportion of domestic backlight will continue to improve, the global share is expected to reach more than 25%. At the same time, in 2013 the global backlight market supply center of gravity shifted to the mainland of China, is expected in the second quarter of 2014 to have a positive effect on domestic backlight manufacturers. At the same time, the electronic development fund for backlight display chip support will further enhance the competitiveness of domestic backlight manufacturers and technical strength.

With the increase in the proportion of localization, there will be more manufacturers to enter the backlight field. Industry chain integration process will be accelerated. With the rapid development in recent years, the government industrial policy guidance and LED lighting technology, LED significantly faster industry consolidation, with core technology, patent advantage, brand advantage, competitive and reasonable industrial layout leading enterprises have started through mergers and acquisitions to increase its market share. In the second quarter of 2014, with the industry price decline has slowed down, the industrial chain is expected to gradually mature, LED industry will further strengthen the industry focus on the trend, the integration of acquisitions will be gradually evolved as the main means of enterprise expansion.