LED industry will continue to drive a new round of mergers and acquisitions of capital

The price started the first shot in Taiwan EPISTAR, Sanan optoelectronics, nationstar, Linsen etc. mainland enterprises have to follow up, the price of LED industry into the warmer period. Insiders said that in 2015 the industry experienced a "big reshuffle", LED chip, package prices began to rebound, given the price war and disorderly competition in the past, this round of price rise will continue and extend to the terminal products.

More importantly, in the context of global integration, LED industry to enter the stage of capital driven growth, open a new round of mergers and acquisitions integration. With GE, OSRAM and other Chinese companies to exit the lighting market and eliminated, China will become the main transfer of the LED industry to undertake the platform to usher in a new round of development opportunities.

Industry will continue to pick up

Recent price surge brush explosion LED industry circle, signs of significant signs of warmer industry. In Taiwan EPISTAR first price driven by LED, followed by the leading Sanan optoelectronics will prices go up 10% part of small and medium size products; nationstar decided to display the full range of products price increases 10%; decided to display RGB beads Linsen uniform price increase of 5%. In addition, photoelectric XinDa and other non-listed company also have raised the price of beads.

In fact, from the two quarter, LED industry has shown the characteristics of stabilization. In China, as an example, the company said in the semi annual report, due to excessive price decline, from the two quarter of the industry product prices have bottomed out phenomenon.

Raw materials and rising costs as a major factor in the current round of LED price increases. Rawlinson said it because of a rise in raw material prices rise; Sanan optoelectronics said that due to rising prices of gold, substrate and labor costs rose sharply; nationstar will increase the price of gold and silver support due to the high cost and the sapphire substrate prices rose sharply.

In this regard, Liu Rong, President of Hua Guang said that the price rebound is expected to continue, and continue to the end product segments. The cost of raw materials prices is the dominant factor of LED price, but more importantly, the vicious competition of low price for a period of time, the whole industry chain profit space has been compressed to limit, product prices become inevitable. With the elimination of incandescent lamps, people to improve the quality of the product requirements, low quality and low price competition in the past, product prices continued to be expected.

Capital driven a new round of mergers and acquisitions

Liu Rong also stressed that in the context of global integration, LED industry to enter the stage of capital driven growth, adhere to the main industry leading companies will achieve greater and stronger through more mergers and acquisitions at home and abroad.

Because the industry profits decline, GE, OSRAM, Samsung and other international giants have quit the LED lighting market, China will become the main LED platform to undertake the transfer of industries, is expected to usher in a more high-end market share abroad, as well as a new round of industry mergers and acquisitions opportunities.

Based on the screen everywhere, LED upstream and downstream of the industrial chain, to seize the layout of the main industry becomes a double air outlet. Reporters statistics, VR (virtual reality), sports, culture and entertainment is the company's favorite LED tuyere. In Liu Rong seems, LED industry has entered a mature period, explosive growth opportunities are not many, there will be more companies do not have the technical or scale advantage to seek more explosive growth opportunities in the industry. In this regard, insiders said that these cross-border restructuring of the industry to seek opportunities for high growth opportunities worthy of attention.

But Liu Rong is more optimistic about the industry or industry chain integration based on the "overlapping business, manufacturing and customer can form complementary advantages, such as sports, based on the screen extends to the integrated circuit manufacturing technology based on extension. "Liu Rong said that the merger is based on new HC semitek" LED and MEMS have many similarities "positioning: in addition to the production of some of the common and similar advantages, advantages in the new consumer electronics and automotive industries contribute to the growth of Huacan photoelectric, and HC semitek contribute to the new customer.

It is reported that the Yiwu HC semitek factory construction has been nearly a critical stage, entered the trial production early next year; then, HC semitek will have the ability to provide LED epitaxial chip 1 million 300 thousand, sapphire substrate nearly 1 million 600 thousand pieces, to further consolidate its position in the industry.

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