Large and small enterprises are rushing to bump the unevenness of the LED industry chain

Shenzhen recently quietly canceled the first LED industry plan to pour a cold water into the hot market, and the industry's interpretation of this policy shift is mixed. Some people in the industry admit that it is still to be seen whether the LED industry will suddenly continue to heat up in the short term. It is inevitable to rely solely on price advantages to open up the land to avoid the low-end manufacturing.

Glowing new year

The construction of the subway led to the closure of Huaqiang North Road for three years, but the LED trading center of this place still attracted many businessmen to settle in.

Shortly after the opening of this year, Shenzhen Huaqiang North LED Trading Center launched investment promotion. The market will be expanded from the original 6th floor to the 5th floor, and the total operating area will reach 13,000 square meters, which can meet the needs of 420 LED manufacturers to open stores. Many new businesses are entering the market, busy with the decoration of the store and the placement of goods.

"I hope to gain more orders with the popularity and popularity of Huaqiang market." Some new vendors said.

"This year's orders are simply too busy." Wang Lei, general manager of Guangdong Zhonger Optoelectronics Technology Co., Ltd. told reporters that since the beginning of the year, the international market has begun to improve, and the current order situation is more optimistic.

The small factory is still the case, and the orders of the big factories are coming. Zhou Xuejun, marketing director of Philips Lumileds Asia, said in an interview that the overseas market is hot, and the second plant in Penang, Malaysia has started construction last year, but the orders on hand are still too busy.

External warm air wrinkles a river spring water. Some LED manufacturers in Guangdong have begun to hire workers. In the Baiwangxin Industrial Park in Nanshan District, Shenzhen, listed companies such as Ruifeng Optoelectronics, Lehman Optoelectronics, and Maoshuo Power Supply are located here. Many companies are filled with recruitment advertisements at the doorstep, and the machines in the LED factory are busy day and night.

For the industry to pick up, Ruifeng Optoelectronics Dong Zhuang Zhuang Ji Li's view is that the backlight LED packaging market has been launched since the end of last year, thanks to the increased penetration of the LED backlight TV market. At the beginning of this year, due to the increased acceptance of LED lighting in foreign countries, the growth of external demand led to a hot market in the first quarter.

"Canada, Skyworth, Changhong and other domestic TV manufacturers have begun to adopt more energy-efficient LED backlights. The penetration rate of LED backlight market has increased to about 60% last year. It is expected to reach 90% this year and the market capacity will reach 8 billion yuan." Zhuang Jili believes that the LED backlight market will become increasingly saturated in the next few years, and with the launch of OLEDs by major Korean manufacturers such as Samsung and LG, LED backlight LCD technology will likely be eliminated, and the market potential will be applied in the field of lighting in the next few years.

To this end, Ruifeng Optoelectronics continues to increase the packaging capacity of lighting. It is understood that at the end of February this year, Ruifeng Optoelectronics signed an LED light source project in Shanghai Lingang, focusing on LED lighting packaging. The total investment of the project is about 500 million to 600 million yuan, and it is expected to be completed and put into production by the end of this year.

Uneven heating and cooling in the industrial chain

Although the LED industry is booming this spring, the industry chain is uneven: the lighting chip situation is very good, showing that the chips are miserable; the mid-stream manufacturers are constantly ordering, but the competition is still fierce.

A deputy general manager of a Zhejiang enterprise engaged in LED substrate manufacturing told reporters that although the downstream lighting market has opened up a mouth, the overseas market and the domestic commercial lighting market have a way out, but as far as the industry as a whole, the upstream manufacturers engaged in display chips are trapped. Overcapacity is still unbearable; midstream packaging, devices and even downstream terminal application manufacturers are numerous, and the products are mixed, and the products are mixed, which not only exacerbates competition in the industry, but also hurts the reputation of domestic brands.

In fact, the uneven heat and cold in the industrial chain can also be seen from the performance of listed companies.

In the first quarter of 2013, the total revenue of 25 LED companies listed on the A-share market was 9.9 billion yuan, a year-on-year increase of 12%; the total net profit reached 700 million yuan, down 3% year-on-year. In the first quarter of this year, the overall performance of the LED industry continued to increase without increasing profits, but the overall performance decline trend was significantly weakened. Among them, the mid-stream packaging and downstream application companies' net profit performance is better than the upstream chip companies, mainly due to factors such as severe overcapacity of upstream chips and low operating rate of enterprises.

According to a report released by the High-tech LED Industry Research Institute (GLII), there were 74 epitaxial chip companies in mainland China in 2012, including the output value of LED chips including Taiwan-funded and foreign-funded production bases in the mainland of about 7.2 billion yuan.

In the past few years, LED has been used as a sample of the national energy conservation and environmental protection industry, attracting a lot of capital intervention. Especially in 2009~2010, there has been a situation in which China has invested in the LED industry. The production capacity of the overheated investment in the previous period was released in the second half of 2011 to the first half of 2012, causing the price of LED chips to continue to fall.

Taking the LED chip leading company Silan Micro as an example, in 2012, the average selling price of its subsidiary Hangzhou Silan Mingxin Technology Co., Ltd. decreased by 48.04% compared with the forecasted selling price of the previously raised funds project.

"In the first quarter of this year, the market gradually recovered, and downstream demand continued to expand. However, the overall price of the chip continued to be sluggish, and the market competition was still very cruel." Dong Zhijiang, general manager of Wuhan Diyuan Optoelectronics admitted that the upstream situation of the industry is facing a severe situation. Blind subsidies for attracting investment and blindly expanding production.

"This is the fate of China's manufacturing industry. It looks like a beautiful industry. Everyone wants to enter, and local governments are especially happy." Dong Zhijiang said.

Compared with chip manufacturers, midstream packaging manufacturers face more intense competition. At the same time, due to the intermediate link in the industry chain, most packaging manufacturers are mired in the "linkage debt" dilemma, that is, the downstream terminal application manufacturers are in arrears with the packaging manufacturers' money, and the packaging manufacturers can only owe money to the upstream chip and luminescent material manufacturers.

As long as the two sides of the "chain debt" are slightly swayed, the packaging manufacturers will face a huge risk of capital cut-off. Previously, large-scale LED manufacturers such as Shenzhen Duo Duo, Vision Optoelectronics, etc., were largely closed due to “chain debt”.

In the past few years, the LED terminal application market is also uneven: the outdoor media market is in a downturn, and the LED display market is almost saturated; LED-backlit LCD products did not open until last year, but after a year of explosive development, The market penetration rate of this product is nearly 70%, but it is facing the impact of new display technology OLED; the lighting market relies on government projects such as street lamp renewal and subway lighting.

Large and small enterprises rushing to the beach

Nowadays, the LED lighting market has slightly improved in the commercial application field, and almost all the enterprises in the industrial chain have piled up inside.

At present, Huacan Optoelectronics and Silan Micro, which were mainly based on display chips, have begun to transform the development and production of lighting chips.

Huacan Optoelectronics began to increase the development of the white light chip market last year. Huacan Optoelectronics' total investment of 1.8 billion yuan in Suzhou Zhangjiagang is expected to be completed by the end of this year. 50% of the production capacity will be released in the lighting white chip business. .

Jiang Zhongyong, general manager of Hangzhou Silan Mingxin Technology Co., Ltd. said that this year will continue to expand production, and the proportion of lighting chips will rise to 30% to 40%. In addition, the original lighting chip manufacturers, including Dehao Runda, are also rushing to expand production.

A number of packaging manufacturers also expressed optimism and intention to compete in the field of lighting. Zhuang Jili told reporters that the LED backlight business is only a support point for the company, and the growth of future performance will be in the field of lighting.

Recently, Gaogong LED held the “2013 Zhongshan Lighting Quality Upgrade Strategy Conference” held in Xiaolan Town, Zhongshan City. The reporter observed that there were over 300 large and small lighting enterprises coming to the meeting. Some private enterprises that used to be small hardware devices also came to the meeting, hoping to transform into LED lighting fixtures, in order to get a piece of the pie, which shows that the industry is hot. Happening.

In Xiaolan Town, Zhongshan, the reporter saw that the first phase of the LED China Jiuzhou City has been completed, and hundreds of LED lighting companies have settled in. According to the person in charge of the project, the total investment of the project is 1.3 billion yuan and the total construction area is 400,000 square meters. After the opening of the project, it will probably be the largest LED lighting application trading center in China.

Some insiders worry that although the current white LED chip for lighting is still relatively high, but with the release of the capacity of the original and recent manufacturers, the industry will reproduce the situation of mutual squeeze.

What worries the industry is that multinational groups such as Samsung, GE and Cooper have stepped into the LED industry and stirred up the domestic LED industry.

In April of this year, Tang Guoqing, the general manager of the original Career China market, quietly took over the new general manager of Samsung LED China. Tang Guoqing said that Samsung has not entered the high-power LED lighting market for a long time. If you want to make a difference in the highly competitive market, the best way is to innovate.

"Samsung's strategy is to make a loss-making business! If you lose a penny, he will lose three cents. In short, it is cheaper than you. See you and you don't follow. You will eventually be dragged by him, not with the market. He will be occupied by him. Anyway, the profit of other businesses in the group can be made up, they can afford it." An LED packaging manufacturer, who did not want to be named, said Samsung.

The above-mentioned marketing director told reporters that because Samsung Group abandoned the liquid crystal display technology and focused on the OLED panel, Samsung's original partial backlight packaging capacity was transferred to the lighting field. As a newcomer to the market, Samsung’s main attempt was to attack the city in a price war.

Other multinational lighting giants are also sharpening their knives and wanting to expand their territory in China. Kong Xianghui, CEO of Philips Greater China, revealed that Philips' LED professional lighting factory in Chengdu will be put into operation in September this year. Osram recently launched nearly 20 new LED products in China.

( This article is reproduced on the Internet. The texts and opinions expressed in this article have not been confirmed by this site, nor do they represent the position of Gaogong LED . Readers need to verify the relevant content by themselves. )

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