Chip companies compete for LED display application market

First, the domestic LED chip market is changing

With the government's vigorous promotion and policy support, China's LED industry has developed rapidly. From the beginning of more than a dozen epitaxial chip companies in the past ten years to nearly 100, from the initial four industrial bases to the present 7 Large industrial bases (Xiamen, Shanghai, Dalian, Nanchang, Shenzhen, Yangzhou, Shijiazhuang), six major LED industry clusters (Western Triangle, Bohai Sea, Yangtze River Delta, two lakes and one emblem, Pearl River Delta and Anhui), with an output value of 12 billion Yuan has increased to the current 156 billion yuan. A group of representative LED epitaxial and chip companies have been established: Xiamen Sanan, Jiangxi Lianchuang, Guangdong Dehao Runda, Xiamen Dry Photo, Hangzhou Silan Mingxin, Wuhan Diyuan, Huacan Optoelectronics, etc. Some companies have become bigger and stronger and have successfully listed, such as Sanan Optoelectronics, Ganzhao Optoelectronics, Silan Mingxin and Huacan Optoelectronics.

However, compared with international giants, the overall competitiveness of China's chip companies is not strong. At present, the domestic LED market has shown many unstable factors, especially in the field of LED display screens , it is difficult to continue the glory of the year. Its main performance is overcapacity and profits.

Since 2010, the crazy investment in China's LED chip industry has directly led to a serious excess of chip production capacity, and product prices have continued to fall. With the various capitals coming out, the LED industry has clearly begun to appear oversupply. Moreover, domestic manufacturers in the high-end sector do not have too much market share, and can only fight price wars at the low-end and low-end, resulting in structural overcapacity. Overcapacity has led to increasingly fierce market competition. In addition, some chip companies rely on government subsidies to adopt low-cost market occupation strategies, which directly leads to the chip market stifling. Affected by this, in 2012, 90% of domestic LED chip companies were in a state of loss, and some enterprises without financial support have fallen. The Chinese LED chip industry has changed from early technological competition to capital competition.

Second, LED display chip market restructuring

With the improvement of domestic LED display chip technology, the current domestic LED display chip localization rate exceeds 70%, and it is increasing year by year. Compared with domestic LED lighting chips, the domestic LED display LED chip technology level is very close to the international top level. More and more domestic LED companies have begun to use domestic LED chips to produce high-end displays. From the perspective of the number of blue-green LED chips imported, the import rate has been decreasing year by year. It can be seen that the domestic LED display chip technology has made great progress.

Due to the decline in the price of terminal application products, the price of LED display chip is also plummeting, the profit margin is severely compressed, and with the sudden emergence of the lighting market, many LED display chip companies have begun to increase their investment in lighting chips, or Actively adjusting the strategy, the phenomenon of restructuring is particularly obvious.

In 2012, Sanan Optoelectronics became the largest shareholder of Taiwan's Yuyuan through subscription, and the action immediately attracted wide-ranging discussions from all walks of life. In addition, Sanan has conducted a series of vertical integration activities through its subsidiaries. At the same time, in the LED lighting industry and the market's recovery, Sanan Optoelectronics originally re-raised the Wuhu Phase II project, which was put on hold for more than two months.

The main products of Wuhan Huacan Optoelectronics are GaN-based high-brightness blue and green LED chips, which have occupied a large market share in the field of LED display chips. In 2012, Huacan Optoelectronics' operating profit dropped significantly, and the company began to gradually increase lighting and backlight. investment. Its main performance is to accelerate the construction of the third phase of the project through the funds raised through the listing, to transform and expand the production capacity of the production line, and to increase the construction of the Suzhou subsidiary of the fundraising project. With the continuous launch of new equipment, Huacan will continue to exert its strength in the field of LED lighting chips.

Silan Mingxin has always been aiming at high-end LED display chips. Although the profit compression of Silan Micro was the best in the industry last year, Silan Mingxin actively changed its strategy and made great efforts in high-end LED display chips and packages. article. Its packaging company, Meikale, will catch up with Nichia and Cree's packaging products. At present, related products have matured. Similarly, in order to alleviate the tension of profits, Silan Mingxin also added LED lighting chips.

Taiwan's wafer chip has a deep reputation in the field of high-power and medium-power, and its display-specific chip has a high reputation in the field of outdoor LED full-color display. As a long-established enterprise in Taiwan, Jingyuan spares no effort in research and development, marketing is relatively low-key, and its market share is stable.

According to relevant investigations, the domestic LED display high-end and low-end market is more distinct. Among them, Huacan Optoelectronics and Silan Mingxin have been recognized as high-end LED display chips, while Sanan Optoelectronics, Shanghai Blu-ray, Dalian Lumei, etc. Other companies are mainly used as low-end LED display chips. Because of their great price, they will monopolize the low-end market of domestic LED display in the next few years.

International companies Nichia, CREE , OSRAM are China's leading suppliers of high-end LED chips for display screens, mainly supplying blue-green LED chips, especially in Japan and CREE's LED chips for display in China, which has a large market share. .

China's LED chip industry is accelerating its development. At the same time, foreign chip manufacturers are also accelerating the layout of the Chinese market, Cree strongly promotes its LED display packaging devices, and the low-key Nichia has also changed its strategy and began to market in China. Domestically, Sanan, Silan Mingxin, Huacan, etc. are all increasing strategic alliances, which will help the domestic LED display market to flourish and mature, but on the other hand, due to LED lighting Good signs have attracted many chip companies to turn, pushing LED lighting chips is also the performance of the current LED chip veteran manufacturers.

At present, the entire industry of LED display is experiencing the pain of transformation and upgrading. Some enterprises with weak energy have begun to be shaken out. This dangerous signal may affect many compatriots in the industry. The continuous decline in product prices almost squeezed the survival of related companies. Ben and confidence. We do not deny the dilemma of the domestic LED display market, but as a member of the industry, we hope that every company engaged in display-related business can contribute its own strength, especially upstream chip manufacturers, and can not lose confidence in the industry. . After honing and baptism, we believe that the future LED display industry will be benign and healthy.