LED packaging industry welcome inflection point? National Star photoelectric three short-term expansion

The suffering of the LED industry seems to have some dawn.

October 11th, the National Star photoelectric announcement that intends to invest no more than 400 million yuan to expand the company's packaging projects. This is the year of the National Star optoelectronics third times to expand the production of packaging projects, in the field of packaging, the national star optical market share after the industry leader Mlinson. And this year in Linsen by the way set by the packaging project expansion.

The expansion did not reduce the marginal effect of the two companies, previously nationstar and dense wood products have the price of the news. The price increase with increasing yield, which is considered to be the signal of LED packaging industry through the fierce competition in the winter and usher in the spring.

Packaging giant two this year to expand production

October 11th, the National Star photoelectric announcement that intends to invest no more than 400 million yuan for the company to expand the production of packaging projects, the expansion of the project construction period is from December 2016 to June 2017.

Reporters learned from the National Star photoelectric secretaries do, this round of projects will be used for the National Star photoelectric white light, RGB packaging and components to expand production, RGB product categories, including indoor and small spacing.

This is the third time in a year to expand the National Star optoelectronics. The determination of the first to expand production at the end of 2015, when the nationstar bursts 3 announcement, respectively to two subsidiaries and capital expansion, said not to exceed the expansion project of its own funds invested 400 million yuan package equipment company, is expected in March 2016 after another to complete the purchase, installation and commissioning and operation.

April 2016, the National Star optoelectronics announcement again said the expansion of production, intends to invest no more than 240 million yuan for the company's packaging and components to expand the production of the project, the expansion of the project construction cycle for the year May 2016 ~2016.

The first expansion in nationstar bulletin board resolution content, the expansion of the description of the background is "according to the company's strategic development plan, and the full investigation of the market demand; while the two announcement this year, nationstar began to use" to alleviate the problem of insufficient capacity (situation) "to explain expansion behavior.

Nationstar secretaries who do an interview with reporters said that before expansion rounds have been more than 40% production capacity, with the further popularization of LED products and market applications continue to expand, demand for products orders continued full. "

In addition to the country star power, the industry leader in Linsen set by the way of expansion. In May 26th this year, completed the first set MLS since listing, raising $2 billion 348 million. According to the plan, Linsen to raise funds will be used for 3 projects, of which two were technical and construction project package.

Concentration to raise prices

After the expansion of the two giants of the packaging is behind the survival of smes. Guoxin Securities in October 11th, a research report pointed out that in 2015 nearly 4000 LED related companies to withdraw from the market, in the low-end packaging capacity is backward has been fully eliminated, industry concentration significantly improved.

President Wu Yulin said FSL Lighting Association to accept the "daily economic news" interview with reporters, packaged with certain technical content, therefore, the threshold is relatively high, the industry now is a trend to the giant, "taking Foshan as an example, the original packaging factory for many years revenue tens of millions more don't do anymore, ever about ten, now only two or three, I estimate will continue to reduce. "

"One of the most important means to rival the price war, the listed companies are often at a low price to downstream customers form a siphon effect, thereby forced out competitors.

While the two giants to expand production at the same time, but also to raise the price of major products. At the end of August, a cover of Shenzhen molison optical display technology Co. Ltd. (M.L.S. wholly-owned subsidiary) official notice of pictures appeared in various LED portals, the notice said, "because of the change of the market...... On September 1, 2016 the supply of your RGB display lamp price raised 5%. "

Since then, the National Star optoelectronics also quickly keep up with, in September 1st, the national star in its official WeChat push the article, the National Star display device in the end does not rise in price? The truth is here, the first sentence of the article is: in September 1st, the National Star photoelectric decision: the company display device product prices rose 10%. "

Wu Yulin said, for the two companies, crowding out competitors increase the bargaining power to raise prices of products is also a normal performance.

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