Multi angle analysis of domestic LED industry trend in the second half

LED industry chain, including raw materials, equipment, upstream chip manufacturing, midstream LED packaging and downstream LED applications. The downstream LED applications are mainly divided into LED lighting, LED display and LED backlight applications, etc.. LED application is an important part of the whole industry chain to bring high added value. At present, the market size of LED downstream applications is the largest lighting field, followed by the backlight application and display. The scale of display applications still maintain a relatively stable growth trend, especially with small pitch LED display technology, LED display applications will gradually from the application to the indoor outdoor large size display, applications will be significantly expanded, expected the next few years will remain very high growth rate, which makes the LED display in the downstream application the industrial chain in the proportion gradually increased. Data show that development of the whole industry chain downstream of LED in the first quarter of 2016, Chinese LED industry output value reached 109 billion 700 million yuan, an increase of 23.1%, year-on-year growth has accelerated. The, a quarter of the LED chip, LED package and LED application value were 3 billion 340 million yuan, 17 billion 620 million yuan and 88 billion 730 million yuan, an increase of 13%, 16.7% and 24.9% respectively. LED growth and differentiation in the middle and lower reaches of the obvious, in which the upstream chip and midstream packaging growth below the industry average growth rate, the market price competition is still affected. Price: LED chip prices in the second half will not change too much into 2016, by weak demand in the international market, Chinese influence the economic slowdown and other macroeconomic factors, the characteristics of LED industry product homogeneity, price competition, merger integration normalization etc.. 2015 the mainland LED chip manufacturers continue to release new capacity, the proportion is as high as 20% market pile up in excess of requirement. First quarter of 2016, affected by the adjustment of the production structure of inventory and chip enterprises, overall industry capacity utilization declined, and last year LED lighting chip price decreases, this year some enterprises half chip prices slightly callback trend. Although EPISTAR, Samsung CREE and other international companies have made a selective decision to cut production, but the domestic HC semitek, Australia Shunchang and other companies have been in a state of full production, supply and demand pattern of the overall market is still not changed, is still in the state of pile up in excess of requirement. With the completion of the second half of the enterprise product structure adjustment and market demand, chip prices will remain stable overall. The first half of 2016 changelight blue chip project put into production, the second half of the company's blue chip products production capacity will be gradually released. The second half of 2016 Australia Shunchang two LED wafer and chip project will be completed, is expected to expand the production capacity of at least one times. The second half of 2016 chip leader Sanan optoelectronics equity investment projects of Xiamen Sanan optoelectronics limited production is gradually released, the company has invested MOCVD equipment 28 Taiwan cavity (converted into 2 54 inch tablet machine is equivalent to 56), which in March 12 units into the cavity of the production capacity will be reflected in the two quarter, the remaining equipment will also be put into production as soon as possible production capacity will be further expanded. HC semitek May 2016, a total investment of 6 billion yuan, LED epitaxial chip and sapphire processing project, officially launched a groundbreaking ceremony in Zhejiang Yiwu industrial park. Technology: EMC package, CSP package become a trend from the beginning of 2015, packaging enterprise market competition further intensified, the growth of enterprise net profit rate continued to decline, companies began to focus on Market Research and development of LED packaging technology. With the maturity of LED lighting applications, since this year, the power LED market demand has risen sharply, LED packaging plant is actively imported into medium and high power EMC bracket. EMC package from the past 2W products is to 2-5W product penetration, and accelerate the decline in prices, has posed a threat to the traditional PPA bracket and ceramic substrate. PHILPS, CREE, OSRAM, Samsung and other international giants have launched a LED flip chip and chip scale packaging products, domestic chip companies also intends to use the second half of this year amounts to 500 million yuan in the construction of LED chip package project, the second half of the more flip chip and chip scale packaging products will be introduced. Market: market segments become half of small spacing display, automotive lighting, plant lighting, UVLED and other new market segments 2016 enterprises breakthrough way will become the rapid development of LED industry market segments, and quickly became the focus of concern to the industry. The first quarter of 2016 liard small pitch signed orders amounted to 284 million yuan, representing an increase of 155.86% over the same period last year; the first quarter LED Alto electronic display products export contract orders up to $19 million 400 thousand, more than the year 2015 LED display products export contract sum of order. The first quarter of 2016 Forda signal contribution to net profit of about 10 million yuan (the first half of 2015 Florida signal net profit of only 9 million 950 thousand year-on-year growth). At the same time LED replace the traditional xenon lamp, halogen lamp head lamp market space is still great. Small spacing display, automotive lighting and other segments of the market prospects. Industry: integration of industrial chain to further accelerate the chip manufacturing, packaging enterprises, product application between enterprises is still in a phase of rapid integration. With the pre LED lighting market is generally good and bring the expansion of investment boom, the chip market capacity expansion, the major chip enterprises through the integration of the LED in the middle and lower quality assets, improve the industrial chain, to further extend the business. March 18, 2016, HC semitek announcement, the acquisition of Yiwu Rui Jing Photoelectric Technology Co., Ltd. 100% stake. 201