Taiwan LED overall situation has set a high margin market competition upgrade

LED capacity over expansion lead to overcapacity, price competition since four, slowing growth of the LED market, under the fierce shuffle, LEDinside Research Associate in storage - that, with strong financial support, the scale and the technical research and development capabilities of LED factory, can pass this wave and the whole winter.

Chu Yu Chao said, previously, LED manufacturers in the government financial support, the excessive expansion of production capacity, although in recent years has slowed, the ratio LED of the chip industry's pile up in excess of requirement of up to 22%; in addition, according to the LEDinside "2015 global LED lighting market trends report" shows that in 2015 the global lighting market scale will reach $82 billion 100 million. Among them, the LED lighting market will reach $25 billion 700 million, the market penetration of 31%.

The growth rate of almost halved

Because the LED industry growth rate almost halved the number of small and medium-sized factory, limited funds, customer and channel development is not easy, if there is no special technology can only be the whole and. The reservoir in super Taiwan LED industry said, after a few years of reshuffle and integration, each domains situation is gone, LED chip factory in crystal electric, the packaging factory is a billion light headed, Taiwan area to be whole and is not easy.

He said, the past and the whole Taiwan factory is mainly in order to fight the economic scale, but now made no sense, because the LED bargain seriously, in order to strive for greater profit space, Taiwan manufacturers have begun towards niche and high margin product development.

As for the previous reports of some 2 lines of packaging factory to sell, but the price and technology could not agree on failure. Chu Yu Chao pointed out that at this stage of the whole and, unless it is with unique technologies or patents, otherwise very difficult to have the whole case, mainly is the whole and need a break in a long period, and he and the whole plant, more cost-effective than their own investment.

The situation of LED industry in Taiwan area has been set, the mainland is also dominated by three LED, HC semitek Elec-Tech, the top 5 manufacturers, with the city of about 65% share, as far as the encapsulation is concentrated in the country, and Ruifeng Linsen, star factory mainly hongli.

Different from the previous one and the whole thrust of scale, the next 2 years, China merger will also move toward internationalization, international companies LED acquisitions overseas, as previously China Jinsha River Group acquisition of Lumileds and other such cases will also increase.

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