The data interpretation of LED chip industry behind the growth of "thrust"

Dramexchange consulting LED Research Center (LEDinside) data show that in 2016 China LED chip market scale reached 13 billion 900 million yuan, after the recession of 2015 -7%, the chip industry ushered in the 9% growth in 2016. The chip industry's growth, whether from downstream application end demand? But it is not the case, first look at a set of data.

Figure 1: LED lighting exports China (millions of dollars)

Data sources: Chinese customs, LEDinside finishing

This is China LED lighting export data from the customs Chinese. It can be seen from the figure, the 2016 LED lighting exports growth rate is only 2%. As the largest LED application field, the lighting market in the past few years have high-speed growth, but in 2016, the growth momentum has been somewhat inadequate, the lighting industry entered the mature stage.

The backlight field, although the average size of TV increased, but with the improvement in technology, the number of LED particles per unit area required for the industry decline, backlight has already entered a recession.

To say no to promote the terminal market, is not entirely correct. In 2016, the small spacing display market continue to maintain rapid growth, the LED chip market demand has a positive role, but the small spacing display market size is relatively small, the impetus for the chip industry co..

Vehicle lighting field, market and technology are mainly concentrated in the hands of international manufacturers, Chinese chip industry impetus is not obvious. The emerging field of other plant lighting, medical lighting, is still in its infancy, basically can be neglected.

So, what is the main power to promote the growth of the China LED chip industry? We look at a set of data.

Figure 2: supply LED chip market Chinese

Data source: LEDinside

This figure reflects the availability of the LED chip market Chinese.

LED chip market China has three main supply camp, respectively, Chinese China manufacturers, manufacturers and international manufacturers in Taiwan. The international manufacturers mainly to sales of LED devices, so the international manufacturers sales in Chinese chip market, basically negligible, the Chinese LED chip market has become China between manufacturers and manufacturers in Taiwan, China contest.

LEDinside data show that Taiwan manufacturers in the China market share showed a downward trend year by year, the 2016 market share of only 22%, while Chinese mainland companies increased to 76%. Taiwan manufacturers have basically left a crystal electric, other manufacturers basically can be ignored, and in the Chinese crystal electric market share is declining.

Figure 3: imported LED chip market Chinese

Data source: LEDinside

From the beginning of 2010, in support of the government, the mainland LED chip manufacturers Chinese massive expansion, three, Huacan and other manufacturers, increasing MOCVD. Chinese in Taiwan and the international plant expansion is more cautious and more in recent years, but in recent years, China manufacturers continued to expand production capacity, and the next few years will continue to expand production capacity. The technology is gradually transparent, China, the competitiveness of manufacturers will be strengthened.

Let's look at the China mainland manufacturers in 2016, LEDinside data show that in 2016, Chinese manufacturers LED chip output value of 11 billion 400 million yuan, an increase of 13%.

Figure 4: Chinese, LED chip manufacturers value

Data source: LEDinside

It can be seen that the mainland manufacturers output growth rate of 13%, higher than the market growth rate of 9%, because some products have been sold to the international market and Taiwan Chinese. As can be seen from the figure, LED chip export rate in 2016 is very obvious, the LED, Sanan optoelectronics manufacturers gradually enter the international market such as Taiwan and South Korea China.

Figure 5: Chinese, LED chip export situation

Data source: LEDinside

The above data can show the comprehensive competitiveness of the mainland LED chip manufacturers, constantly strengthen, and in the China market, with the industry reshuffle, industry concentration increased rapidly, the market competition has eased, chip prices steady rise, enterprise gross margin improved significantly.

Figure 6: Chinese LED chip industry market concentration

Data source: LEDinside

LEDinside data show that in 2016 the top ten LED chip manufacturers market share has increased to 77%, the top three manufacturers market share reached 50%. Industrial concentration will continue to improve, because the expansion plans of the future, are mainly three, Dachang Huacan, then small manufacturers market will gradually be eliminated or marginalized.

To enhance the degree of market concentration, market competition eased, chip prices have bottomed signs, part of the chip prices. And no matter whether a big rebound in chip prices, in the influence of technology promotion and the scale advantage, price stability is conducive to chip chip manufacturers to enhance profitability.

Figure 7:LED chip factory gross profit margin

Data sources: public data, LEDinside finishing

The second half of 2016, three, Huacan and changelight gross margin improved significantly, LED chip prices rebound caused by profitability gradually reflected, 4Q16 three manufacturers average gross margin reached 40% 1Q17, gross profit margin also has greatly improved, this is a sign of the LED chip industry usher in a turning point of the.

In summary, LEDinside believes that the main impetus for the growth of Chinese LED chip industry, competitiveness is Chinese chip industry upgrade, is Chinese chip industry has experienced brutal reshuffle, easing market competition