Spotlight under the shadow of LED expansion of the enterprise behind the worries

In the capital market boom and related companies have also started a large-scale expansion of Silan, Sanan optoelectronics industry leader announced large-scale expansion; Elec-Tech, Han's laser, Tongfang and other industrial enterprises also have advance or peripheral increase of LED in the field of investment. Market participants believe that the first year of the development of LED industry has come. However, the large-scale expansion of the implementation of the policy is not to be behind the shadow constraints ranking and the key equipment is heavily dependent on imports of the overweeningly ambitious emerging industry faces many challenges. China's LED industry has not yet been able to successfully break through the market hype or just become another big industry bubble blowing? Market expansion: a strong catalyst for the expansion of enterprises in 2010 the initial capital market LED plate was fired hot. The industry of the two leading companies Silan and Optoelectronics have announced the massive expansion of LED chip scale expansion accelerated. Which Silan intends through private placement fund-raising not more than 600 million yuan is mainly used for high brightness LED chip production line expansion project when its LED chip is an annual increase of 7 billion 200 million to 13 billion 200 million a year, wafer production capacity 420 thousand to 570 thousand tablets. Then an optoelectronic announced expansion planning is more ambitious in its LED industrialization base in cooperation with the Wuhu municipal government building not only engaged in LED epitaxial wafer, chip R & D and production and downstream packaging and application products R & D and manufacturing extension a total investment of up to 12 billion yuan, only an investment amounted to 6 billion total planned construction period is 4 year. And many upstream and downstream companies and even private companies are eager to share a slice of the rapid development of LED. Such as Han's laser, Elec-Tech etc. the main business associated with the LED not only originally involved in the application and packaging industry through mergers and acquisitions have expanded the scale of investment and extends to the upstream and downstream industry chain. In an optoelectronic three massive expansion for example although the 12 billion scale industry base in Wuhu caused a lot of controversy but Sanan optoelectronics chairman Lin Xiucheng in an interview with reporters, still very confident. "The development of LED is earlier and faster than expected," he said, adding that the Chinese market will be bigger. Lin Xiucheng's optimism is not without reason. 2009, including backlight display and lighting applications, including growth has been proven and responded by the industry and is considered to be the two main cause of the outbreak of the market in 2010. According to the statistics of Ledinside and the Great Wall Securities Research Institute in 2008 China's LED output value of the two leading areas of application for landscape lighting and liquid crystal display backlight. According to the alliance national semiconductor lighting project statistics in 2008 LED in the field of packaging industry chain in China on the output value reached 16 billion 800 million yuan to 18 billion 500 million yuan in 2007 increased by 10%; the yield from 82 billion in 2007 increased by only 15% to 94 billion of which highlight the LED output value reached 14 billion yuan LED accounted for 76% of total sales in the market; the application is important as backlight of liquid crystal display LCD. In an interview with the reporter, many industry insiders pointed out: with the LED luminous efficiency, cost reduction and environmental policy in the implementation of LED LCD TV, LCD display and notebook computer and other large size LCD backlight application proportion is gradually increased in size; large screen back light source will promote the rapid growth in the LED industry in 2010. According to Societe Generale Securities analyst Liu Liang forecast: 2010 LCD TV, the number of LED chip backlight needs 30 billion and 6 billion. At present, many domestic and foreign appliance manufacturers have noticed this trend and has been in the upper reaches of the layout to ensure the supply of LED backlight. One of the domestic SKYWORTH, Konka has both stake in Shenzhen, a large private LED packaging plant strategic investment amount to tens of millions. In the field of lighting in accordance with the "opinions" of the development of semiconductor lighting industry in 2015 to target functional lighting, LCD backlight, LED landscape decoration market product penetration will reach 20%, 50% and more than 70% semiconductor lighting industry to achieve an average annual growth of 30%. pattern of dispute: mergers and acquisitions and expansion of market expansion despite the raging like a storm demand of enterprise scale accelerated but in the entire LED industry chain now have expansion is generally concentrated in the upstream areas especially for some of the strength of the listed companies with profit distribution structure of this unique industry related. It is reported that the LED industry generally in accordance with the wafer and chip manufacturing, packaging and application of LED, is divided into the upper and lower reaches; the epitaxial wafer and chip manufacturing is the core of the LED industry chain is also the highest value-added link is a typical technology or capital intensive industries and the "three high": barrier packaging and application in the middle and lower reaches of the link low labor-intensive industries. According to the Great Wall securities statistics in LED industrial chain of LED epitaxial wafer and chip industry accounts for about 70% of the profits accounted for about 10 to 20% LED package and LED application probably accounted for 10 to 20%. so as Elec-Tech this only originally involved in the application through mergers and acquisitions and packaging field company also plans to raise money through private placement to get involved in the upstream industry expand profit space. Guoxin Securities analyst Wang Nianchun pointed out: the current strength of Elec-Tech who do not have the LED chip manufacturing technology, production capacity is expected to accelerate the company through the acquisition of relevant intervention LED chip manufacturing. This is also an effective way to get involved in the field of LED companies outside the industry. But it is worth noting that although the upstream chip in short supply but the domestic enterprises do not have the technical advantages especially in the larger size of the backlight and high-power lighting products in the field of lack of competitiveness. Relatively much better packaging is also in line with the global LED industry transfer