It has been observed that the LED industry boom in 2016 has rebounded year on year, the price continued to decline led to further enhance the LED penetration, the other due to India, Southeast Asia and other emerging markets to promote, LED market demand year on year increase.
In recent years, many manufacturers have signed a strategic cooperation agreement, Baotuan signs more and more obvious, so the market share will continue to increase, which is the main driving force for the expansion of the manufacturers.
market share increases, maker expansion portion obvious signs
▲ China LED packaging manufacturers expansion plans at a glance
observed recently manufacturers announcement, October 10, the country star power announced, plans to spend no more than 400 million yuan
LED packaging project expansion.
Since November 2015, China Star has announced three LED packaging expansion plans, the first two were invested 400 million yuan and 240 million yuan project, production capacity has been gradually released.
In the past year, these manufacturers will continue to expand production, but with the previous years, the situation is not the same as the collective expansion of the situation, at this stage, the current situation is not the same as the previous year,
Expansion of the basic manufacturers to large enterprises, small and medium enterprises to expand the situation less.
market competition is still fierce, manufacturers lower profitability Although manufacturers are
have expansion, but the LED market competition remains fierce, packaging manufacturers profitability remains low.
According to LEDinside statistics, 2Q16 major Chinese major manufacturers average gross margin was 24.5%, down 1 percentage point year on year.
Part of the field gross margin low outrageous, such as lighting LED field, Ruifeng photoelectric 1H16 gross margin is only 10.9%, poly light photoelectric 1H16 gross profit rate of only 9.4%.
But into the 3Q16, due to chip prices, some packaging manufacturers also price adjustment, gross margin is expected to be improved.
▲ main LED packaging manufacturers gross margin changes
price deceleration has slowed down, manufacturers are expected to improve profitability
May 2016, Epistar chip prices on the part of the lead process, but was Chinese manufacturers did not follow, but the price
September, including Sanan, with the side, in the Division, including the Chinese chip manufacturers, have made a small size of the chip price to deal with.
Small pitch display market demand, making small-size display chip demand rose sharply, while in the field of lighting, due to downstream manufacturers of high luminous efficiency of the pursuit of light, but also makes small-size lighting chip demand.
Small size chips due to the sharp decline in prices in 2015, resulting in many chip manufacturers to gradually reduce the production capacity of small size chips, resulting in short-term small size chip in short supply, the price is followed by the rise in the market, the price of small chips is expected to rise. |||||||||||||||||||||||||||||||||||||||||||||||||||
As the chip prices, device prices also began to rise, especially in the field of display, wood Linsen, Amp and Cinda photoelectric and other manufacturers, while announced price increases.
Compared to 2015, 2016 LED packaging prices tend to be stable.
▲ 2016 China’s LED package price deceleration slowdown (USD / K)
shuffle plus degrees, since
industry is expected to bottom out in 2014, fierce competition in the market led to the declining profitability of firms, many small and medium enterprises were forced to package
Exit, the emergence of mergers and acquisitions tide also led to the growing size of the manufacturers.
Before the company, but the current national Star photoelectric, Hongli photoelectric scale is also increasing, this year are expected to break through the scale of 2 billion revenue, the other second camp manufacturers have gradually increased the scale.
This round of expansion of the tide, mainly led by large enterprises, including the wood Linsen, the Star, Hongli, Xinda and other large manufacturers, the scale of production capacity has been expanding, the industry will be shaken to speed up the shuffle.
I believe that the LED industry will gradually enter the bottom of the rebound stage, the market share will continue to expand, bargaining power will be improved, profitability will gradually improve.