[Source: Gaogong LED's "LED Research Review", 2013, Issue 12 (Total 48) Jingjun Baochen Optoelectronics (Shenzhen) Co., Ltd. Deputy General Manager Wang Junbo]
Since 2009, under the promotion of domestic investment policies and huge TV backlighting and lighting markets, the LED epitaxial chip industry in mainland China has developed rapidly, and the number of MOCVD machines for major production equipment has grown rapidly. According to statistics, in 2009, the number of MOCVDs used for LED epitaxial production in mainland China was 133, of which about 100 were officially put into mass production, and by the end of 2012, the number of MOCVD machines increased rapidly to 745.
However, since the second half of 2011, the capacity expansion of domestic LED chip companies has begun to slow down. With the gradual completion of investment in LED upstream epitaxial chip companies, the number of new MOCVDs in 2012 has also begun to drop significantly.
In the past five years, the crazy expansion of the domestic LED industry has led to overcapacity, and the price of upstream chips has been falling. This has also given the most impressive change to Jingyuan Optoelectronics (hereinafter referred to as “Crystalâ€). In the case of government subsidies, all the changes in the market pattern were caused. The upstream chip has become the most affected area at this stage, so that the industry loses money when it loses money, and it is bleak; while taking subsidies to subsidize, it continues to be a virtual fire.
Overcapacity of the upstream chip, the other side also reflects the lack of capacity utilization of the chip, and this has been criticized for some reason, the reason is that due to the expansion is too fast, the chip is oversupply.
The government's subsidy to the upstream has made a large number of people see that even if there is no long-term thing, there is no government support behind the results, but unlike mainland Chinese manufacturers, the Taiwanese chip factory has no government subsidies, and all are private enterprises. Under such circumstances, the weight of the market that can withstand is much larger than that of mainland manufacturers with government subsidies behind it. Therefore, in the past five years, the domestic chip manufacturers have risen rapidly. Because of these influences, the Taiwan chip factory has been greatly affected by the domestic market share, and its market share has also dropped significantly.
Although the share of Taiwanese factories has decreased, the impact of changes in domestic chip demand on Jingyuan Optoelectronics is positively greater than negative. In fact, in the past five years, the growth of the largest companies in the upstream chip represented by Jingdian is mainly driven by backlighting and lighting.
From the perspective of the growth of the entire backlight demand, the past five years are the golden five years of backlight LED chips, and the most powerful five years to drive the growth of upstream chips.
However, as the backlight market gradually approaches saturation, from the trend, the backlight market will gradually fall from the peak of demand to steady growth from next year.
Instead, the next biggest growth driver will be the amount of lighting from the lighting market. Since the beginning of 2011, the lighting market is still gradually increasing, not very large. But this year, demand in the lighting market has started to rise sharply. Therefore, in the next few years, the lighting market will be the most profitable area for upstream chip manufacturers.
Although the lighting market demand has rapidly increased, but the good phenomenon has not been transmitted to the upstream in time, the chip market is still oversupply. There may be a rush to the high-end product demand, but the low-end market has not changed much. In this process, a series of movements such as consolidation, gathering and shuffling are also frequent.
With the increase of shuffling efforts, in the next five years, the market will gradually eliminate some enterprises with poor quality, or no technical ability, or no characteristics, and the industrial development will slowly return to a normal and rational state. It will also gradually close up due to industrial integration, and the supply of chips will be concentrated on several large leading enterprises.
Jingdian is also aware of this market trend. While the entire supply chain is preparing for the lighting market, it is also planning for new market changes. At present, the sales of crystal-specific lighting products are also increasing. At the same time, the strategy in the new stage has also changed. At present, Jingdian is increasing its market share in the lighting market by looking for strategic strategic partners.
With the gradual opening of the downstream lighting market, the price decline will gradually slow down. At present, the domestic LED chip industry is gradually returning to rational development. In the future, the competitive landscape of enterprises will gradually stabilize and mature. (This reporter Zhou Jin is based on oral presentation)
Since 2009, under the promotion of domestic investment policies and huge TV backlighting and lighting markets, the LED epitaxial chip industry in mainland China has developed rapidly, and the number of MOCVD machines for major production equipment has grown rapidly. According to statistics, in 2009, the number of MOCVDs used for LED epitaxial production in mainland China was 133, of which about 100 were officially put into mass production, and by the end of 2012, the number of MOCVD machines increased rapidly to 745.
However, since the second half of 2011, the capacity expansion of domestic LED chip companies has begun to slow down. With the gradual completion of investment in LED upstream epitaxial chip companies, the number of new MOCVDs in 2012 has also begun to drop significantly.
In the past five years, the crazy expansion of the domestic LED industry has led to overcapacity, and the price of upstream chips has been falling. This has also given the most impressive change to Jingyuan Optoelectronics (hereinafter referred to as “Crystalâ€). In the case of government subsidies, all the changes in the market pattern were caused. The upstream chip has become the most affected area at this stage, so that the industry loses money when it loses money, and it is bleak; while taking subsidies to subsidize, it continues to be a virtual fire.
Overcapacity of the upstream chip, the other side also reflects the lack of capacity utilization of the chip, and this has been criticized for some reason, the reason is that due to the expansion is too fast, the chip is oversupply.
The government's subsidy to the upstream has made a large number of people see that even if there is no long-term thing, there is no government support behind the results, but unlike mainland Chinese manufacturers, the Taiwanese chip factory has no government subsidies, and all are private enterprises. Under such circumstances, the weight of the market that can withstand is much larger than that of mainland manufacturers with government subsidies behind it. Therefore, in the past five years, the domestic chip manufacturers have risen rapidly. Because of these influences, the Taiwan chip factory has been greatly affected by the domestic market share, and its market share has also dropped significantly.
Although the share of Taiwanese factories has decreased, the impact of changes in domestic chip demand on Jingyuan Optoelectronics is positively greater than negative. In fact, in the past five years, the growth of the largest companies in the upstream chip represented by Jingdian is mainly driven by backlighting and lighting.
From the perspective of the growth of the entire backlight demand, the past five years are the golden five years of backlight LED chips, and the most powerful five years to drive the growth of upstream chips.
However, as the backlight market gradually approaches saturation, from the trend, the backlight market will gradually fall from the peak of demand to steady growth from next year.
Instead, the next biggest growth driver will be the amount of lighting from the lighting market. Since the beginning of 2011, the lighting market is still gradually increasing, not very large. But this year, demand in the lighting market has started to rise sharply. Therefore, in the next few years, the lighting market will be the most profitable area for upstream chip manufacturers.
Although the lighting market demand has rapidly increased, but the good phenomenon has not been transmitted to the upstream in time, the chip market is still oversupply. There may be a rush to the high-end product demand, but the low-end market has not changed much. In this process, a series of movements such as consolidation, gathering and shuffling are also frequent.
With the increase of shuffling efforts, in the next five years, the market will gradually eliminate some enterprises with poor quality, or no technical ability, or no characteristics, and the industrial development will slowly return to a normal and rational state. It will also gradually close up due to industrial integration, and the supply of chips will be concentrated on several large leading enterprises.
Jingdian is also aware of this market trend. While the entire supply chain is preparing for the lighting market, it is also planning for new market changes. At present, the sales of crystal-specific lighting products are also increasing. At the same time, the strategy in the new stage has also changed. At present, Jingdian is increasing its market share in the lighting market by looking for strategic strategic partners.
With the gradual opening of the downstream lighting market, the price decline will gradually slow down. At present, the domestic LED chip industry is gradually returning to rational development. In the future, the competitive landscape of enterprises will gradually stabilize and mature. (This reporter Zhou Jin is based on oral presentation)
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