LED packaging industry urgent need to promote the integration of capital markets

LED industry is a high-tech industry, belonging to environmental protection, energy conservation and emission reduction policies to encourage the development of the industry, from the current level of technological development and market demand, there is still much room for development, its prospects are promising.

LED industry has a relatively long industrial chain (including upstream, midstream, downstream), the technical characteristics and capital characteristics of each field vary widely, from upstream to midstream and downstream, industry barriers to entry gradually reduced. The upstream epitaxial wafer with a typical "double high" (high technology, high capital), the upstream chip also has the characteristics of high technical content, relatively capital intensive, midstream package in the technical content and capital investment low, capital investment and technology content and application products of the low.

First, the upstream epitaxial chip in the field of growth stage, but a large amount of capital demand, entry strength and considerable, the industry is not high level of integration urgency

LED epitaxial wafer and chip industry accounts for about 70% of the profits, China, LED chip companies about sixty or so (the majority of enterprises as the construction stage), a late start, the scale is not big enough, chip companies LED the largest annual output value of about 3 hundred million yuan each, the average annual output value of 1 to 2 hundred million. The upper reaches of the extension / chips by capital of powerful enterprises concerned, the purpose is through the upstream high-end cut, strive to occupy the leading position in the field of LED, these enterprises have listed companies (such as LIAN, Jiangxi Changjiang electronics technology, optoelectronics and Silan etc.), also has a strong capital of private enterprises (such as the Shenzhen century crystal Shenzhen, Dalian Road, source Odren America).

The performance of LED packaging devices in 50% depends on the LED chip, the current domestic small and medium size chip LED package most of the enterprise choose domestic brands, foreign brands and smaller chip performance gap between these domestic brands, good price. Part of the chip manufacturer's product performance has been comparable with foreign brands, through the packaging process technology, has been able to meet the needs of many high-end applications.

The upstream epitaxial chip / field of large amount of investment, lack of professional and technical personnel, the investment risk is relatively large, the number of enterprises, enterprises have invested in the rate of return is not high, the difficulty of integrating, and the field has not been developed to a mature stage of full competition, integration of industry demand is not high, to promote the role of lateral the integration in the field of the whole industry chain.

Two, the middle reaches of the packaging business areas, products, competitive, horizontal integration urgent demand

LED chain is the link between the preceding and the following LED packaging, in the whole industry chain plays an unparalleled role. Various applications of LED devices with large LED based devices, such as large LED screen liquid crystal display, LED backlight, LED lighting, LED lights and car lights, LED devices accounted for 40% to 70% of total cost in the application of the product, the performance and application of LED products to more than 70% by the performance of LED the decision device.

China is LED package power, according to estimates of LED package number 80% of the world's focus on China, distribution in various American, Taiwan, Hong Kong, domestic packaging companies. In the past five years, foreign LED packaging enterprises continue to move to the mainland, domestic packaging enterprises continue to grow and develop, technology continues to mature and innovation. In the low-end LED device packaging field, the overall market share of China's LED packaging enterprises is higher, in the high-end LED device packaging field, some Chinese companies have a greater breakthrough.

But the overall characteristics of China in packaging field is low barriers to entry, small scale enterprises, the number, the increasingly fierce market competition, in order to survival and development of enterprises play a vital role, most manufacturers adopt low-cost competitive strategy, product quality, lack of basic guarantee. Chinese LED packaging companies to achieve rapid and efficient development, we must increase investment in R & D in the research field of LED packaging technology, packaging technology and foreign LED China make up the gap, at the same time by expanding the scale, improve product quality. The implementation of these strategies, relying solely on their own accumulation of enterprises and the strength of the difficult to achieve efficient, the need to use the capital market to buy the merger, horizontal and vertical integration.

LED packaging enterprises some foresight and the lofty ideal of the China, has begun to try to take advantage of the rapid development of Chinese existing capital market, horizontal and downward vertical integration, mergers and acquisitions in the industry competition, expand the scale and channel, to catch up with the country's foreign powerful enterprises. More typical, such as Shenzhen Lehman photoelectric packaging companies such as LED, has begun to hire a securities agency, listed on the operation. If these LED packaging companies listed successfully, will bring the rapid development of China's LED industry, and promote the development of upstream and downstream industries.

Three, the downstream areas of the same business, competition, the future will be polarized development

According to experts, the application of LED products will polarization development, universal LED application products such as outdoor landscape lighting, indoor decorative lighting will be presented with the LED package of enterprise merger trends, professional LED protection products such as lighting, medical lighting, non thermal radiation treatment lamp, germicidal lamp, lighting, flower crops and special biological special lamp and with a solar photovoltaic cell with special LED lights will be based on their own characteristics of independent development, in product development, design and production process of specialization and division of refinement etc..