LED Chip Industry Trends

- Mar 07, 2019-

The global share of LED chips in China has increased from 27.00% in 2013 to 37.10% in 2017. With the decline in LED chip prices and gross margins, the return on investment of LED chips is gradually decreasing. The expansion of foreign LED chip manufacturers tends to be cautious, and the growth of foreign chip supply is limited. The following analysis of the LED chip industry trends.

LED chip industry trend analysis, domestic major LED chip companies have expanded their production, domestic LED chips will have overcapacity problems, chip prices will turn downward, foreign LED chip manufacturers will be more cautious, supply growth is limited, LED The chip industry analysis pointed out that China's LED chip factory Aoyang Shunchang (002245), Huacan Optoelectronics (300323), Sanan Optoelectronics (600703) and other local government support policies, relying on the advantages of capital, scale and other aspects of active expansion, Global LED chip production capacity has gradually shifted to mainland China.

China's LED industry started from the beginning of packaging, and the initial chip mainly relied on imports. In recent years, with the strong demand from the downstream and the support of local policies, the major domestic LED chip companies have increased their R&D investment, actively formulated the expansion plan, and the investment in the chip segment has been continuously improved, which has accelerated the development of the domestic LED chip industry. The trend of LED chip industry is analyzed from three major trends.

In 2016, China's LED packaging market, the national productivity has risen to 67%. LED chip industry trend analysis, but international manufacturers led by Nichia are still the main suppliers of China's packaging market. Among the top ten manufacturers, international manufacturers occupy 5 seats, Nichia is ranked first but Chinese manufacturers are emerging. On behalf of the manufacturer, Mulinsen (002745) developed rapidly. In 2016, he surpassed Lumileds in second place. Guoxing Optoelectronics (002449) and Hongli Zhihui (300219) ranked further.

LED chip industry trend analysis, China's lighting LED market in 2016 reached 25.9 billion yuan, lower than market expectations, mainly due to the lack of growth in international LED lighting demand, resulting in a decline in China's total LED lighting exports. However, due to the promotion of China's domestic demand and the stability of prices, the scale of the LED market in 2016 still maintains 9% growth. It is expected that the LED LED market will reach RMB 28 billion in 2017 and RMB 36.4 billion in 2020, 2015-2020. The compound growth rate is 9%.

As low- and medium-power LEDs are sweeping the LED lighting market, more and more international brands, including Lumileds, OSRAM, CREE, Samsung, LG Innotek, etc., will gradually concentrate their OEM orders in China, making the capacity utilization of China's first-tier manufacturers. The rate remains high. LED chip industry trend analysis, the top five Chinese lighting LED manufacturers are followed by Mulinsen, Hongli Optoelectronics, Tiandian Optoelectronics, Ruifeng Optoelectronics (300241), Zhaochi Energy Saving.

LED chip industry trend analysis, with the gap between domestic technology and international manufacturers, and the active promotion of domestic government policies, foreign companies slow down the pace of expansion, and even some companies are gradually shrinking capacity, domestic LED chip capacity The proportion is getting higher and higher. In the long run, the domestic LED chip market is bound to continue to expand.