The LED chip market to move closer to the leading pattern of an initial

All along, as the technology and capital in the field of double density, LED chip profit level is higher in the industrial chain. But in recent years, the mainland market has gradually become the focus of domestic and foreign chip enterprises, the increasingly fierce competition. In this context, most chip companies rely on the scale of victory, in exchange for market share at low prices, resulting in gross margin continued to decline. Some big companies even say, the next priority is to increase market share, for this price.

Chip companies in the gross profit margin between 20%-45%, the gap between enterprises has been expanding trend. Chip market knockout has just begun. Perhaps the next merger integration efforts will be further strengthened.

The pattern of an initial market leading to close

In recent years, with the rapid volume of domestic LED lighting market, driven by the upstream epitaxial chip companies sales growth. In chip sales continued prosperous situation, enterprises have greatly increased the chip scale in 2014, three, Huacan, BDO Runda, Australia Shunchang and other first tier manufacturers did not hesitate to carry out expansion.

Under the dual stimulation of the market and government subsidies, the rapid growth of MOCVD equipment procurement, in 2014 the national MOCVD holdings reached 1172 units, compared with the machine in 2013 to maintain the volume increased by 15.2%. 2015 China LED chip industry is still in a rapid development period, about 30% of the epitaxial chip companies will continue to expand production, the number of new MOCVD will be more than 250 units.

After two years of fierce competition in the market, the domestic chip manufacturers further competitive pattern. The scale of enterprise, an optoelectronic chip LED annual income of more than 3 billion yuan, belong to the first echelon; Elec-Tech, HC semitek, shares the same side of the three chip 800 million in revenue -10 billion yuan, belonging to second genera and third echelon echelon; the rest of the enterprise.

In 2014, three market share remained at around 30%, BDO, Huacan and Tongfang market share reached 7%-8%. The total market share of the four has more than 50%, and increased year after year. At present, the chip industry market concentration is relatively large, a small number of manufacturers to provide the majority of the industry's products, the market price and production have a certain right to speak.

Wang Lianghai, vice president of the same side bluntly: now the chip industry is relatively clear, 2015, 2016, the basic pattern has been identified. At present, the chip used in packaging enterprises, basically come from several mainstream chip factory. "

LED epitaxial chip companies, capital is the basis for its survival and development. In order to expand the scale of benefits, chip companies invest hundreds of millions of dollars, or buy more than 4 inches and more expensive equipment, or increase R & D investment.

Early due to government subsidies, many LED companies to purchase MOCVD equipment, the construction of the plant, a large area launched LED chip project, the formation of a number of industry leaders. With the gradual withdrawal of government subsidies, the new entrants will be difficult to meet the need to compete with the industry leading equipment spending. Some operating conditions of small LED chip companies, due to the lack of cash flow is difficult to follow up the market will be eliminated.

With the further release of the domestic chip production capacity, the chip market competition intensified, further squeezing the upstream enterprise profits. Leading enterprises will rely on stable customers and strong bargaining power, and further strengthen the industry control, thus forming a stable pattern of competition in the industry.

Future or only 35

Data show that in 2009 there were a total of 62 domestic LED chip companies, and now in the normal production of only more than 20. However, this is only the beginning. Even more frightening is that many industry insiders predict that the future may be the only remaining 35 chip companies.

The day before, EPISTAR President Zhou Mingjun said, due to intense competition, all Taiwan LED chip manufacturers are expected to be merged into 1-2 manufacturer, so will China, global is expected to only 5-6 LED chip manufacturers can survive.

In this regard, the general manager of Hangzhou Silan azure Co Ltd Jiang Zhongyong agrees, he said: "from the perspective of market demand, the future LED chip factory 5 years can continue to exist only about 5. In the future, we will be able to stay with the ability of cost control, leading technology, stable product quality and production capacity. "

However, it seems in the BDO Runda chairman Wang Donglei was far more than that. LED upstream can not escape the law of the development of the semiconductor industry, the world may end up with only 35 LED epitaxial chip companies. If the lighting products made in China only supply the Chinese market, there is only one upstream chip companies. "

In fact, in terms of quantity, the current domestic listed companies involved in the LED chip has far more than 5, if the "35 theory" was established, the future may further reshuffle to fund more strong expansion of listed companies.

Looking for new opportunities

From the beginning of last year, LED lighting ushered in the explosive growth in demand, the upstream chip factory also seems to usher in the spring of the industry, but in fact the performance is generally not ideal, incremental benefits without increasing the dilemma has not been significantly improved.

Two or three line chip factory outlet where? Early Sanan optoelectronics, two Elec-Tech rely on government subsidies, invested heavily in the procurement of MOCVD equipment enterprises, through continuous production output and price competition, further squeezing the market survival and profitability. The two or three line chip factory in the current price war advantage is obviously better than the two companies