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Expansion, equipment localization ... LED chip prices in sight?

  • Source:net
  • Release on :2017-06-13
Shenzhen Risen OPTO Co.,Ltd,LED Flood Light Manufacturers,led wall washer light suppliers,led smd 5730 flood light

In the same experience after the expansion of expansion, overcapacity, as well as manufacturers cut production, production capacity and a series of events, in the upstream LED chip products since the second half of 2016, prices continue to rise. And, with the LED chip entry threshold to improve the industry to further enhance the degree of concentration, and downstream LED lighting and small pitch products driven, LED chip prices remain high, so many LED screen miserable. However, the recent analysis that, with the increase in production capacity, business expansion, and the use of domestic equipment, LED chip prices in sight.

Concentration continues to improve, the chip "three tyrants" accounted for up to five percent of the city
Early due to the strength of the domestic LED chip weak, the Government launched a high subsidy, attracting many speculators to join the LED chip industry. But in 2011, because the speculative overheating problem is serious, many governments have been canceled, tightening the MOCVD equipment subsidies. Without the subsidy of up to 500 to 12 million per device, the high cost of the LED chip industry blocked the pace of many investors and greatly increased the threshold for entry. When the speculative investment group receded, LED chip industry, the high demand for funds and technology gradually reflected, but also greatly promoted the industry reshuffle integration.
And, due to early expansion of expansion, resulting in LED chip overcapacity, intense competition among enterprises, "price war" also will be carried out. In this process, some small and medium enterprises due to poor management or backward technology, gradually being eliminated in the competition, "the stronger the stronger" trend is more obvious, industry concentration greatly improved. It is reported that in 2016, the top ten LED chip manufacturers to occupy 77% of the market share, of which the top three manufacturers accounted for up to 50% market share, ranked first in the enterprise is accounted for nearly 30% of the market share.
In addition, the LED chip manufacturers over-expansion of production capacity, resulting in the price of "diving", the size of the manufacturers have cut production in 2016, and even individual enterprises shut down 25% of the production capacity to promote the return of normal supply and demand situation. And the second half of the beginning, by the chip raw material shortage, driven by price increases, and the downstream application level demand "fueled", LED chip product prices all the way higher, still high, so many downstream LED screen production costs have gone up , Small and medium-sized enterprises is more difficult to bear.
Market situation continues to be good, LED chip leader leader run
Since last year, a small pitch product market broke out, led the LED display industry as a whole on the growth, and in turn stimulated the LED chip demand. And, due to the downstream LED display industry fierce competition and expansion of production, low-cost competition and a series of actions to further develop the display market, but also pushed up the demand for upstream and downstream products.

According to "LED industry market outlook and investment strategic planning analysis report" analysis, by the end of 2017, LED chip demand of about 92.35 million. Among them, the outdoor full-color display demand 26.02 million, an increase of 5%; indoor small demand for 102 million, an increase of 50%. As the LED chip industry is highly concentrated, large enterprises have a strong bargaining power, with the situation in short supply, the seller gradually formed the market.
In addition, the supply of raw materials, the situation is undoubtedly brought about by the LED chip price opportunities. Since October 2016, LED chip prices continue to improve, but also makes the chip business profit situation is good, the development prospects of a good. LED business reported that the first quarter, net profit year on year growth rate ranked "top" is the chip business, an increase of 36.32%, while other chip companies also gratifying results, high growth rate. And, the data show that as of June 5 closing, 11 LED companies released interim results notice, pre-hi ratio of 100%. Overall, the upstream chip and midstream packaging companies net profit growth in the forefront.
Related agencies analysis, although the LED chip market is good, but concerns about the three companies continue to expand the situation, as well as the purchase of equipment subsidies to tighten, small and medium LED chip manufacturers are still in a wait state, not follow the expansion.
Expansion, the use of domestic equipment, LED chip is expected to cut prices
In addition to strong domestic market demand, with the LED chip industry reshuffle and the birth of the industry giants, but also continue to develop foreign markets. Survey report pointed out that last year the domestic LED chip factory's global market share increased to 45%, manufacturers accounted for all the way to upgrade.
Media analysis that the domestic LED industry with other countries and regions difficult to match the price advantage, especially in the low-end market accounted for very high, so that foreign manufacturers have begun to OEM from the domestic LED chip manufacturers in the hands of procurement of products. This way, no doubt further push up the domestic demand for LED chips.
In such a large environment, the expansion of the LED chip to become a large enterprise consensus, all manufacturers have expanded to meet market demand, improve sales. At present, the chip manufacturers have purchased new equipment, some manufacturers have announced that will expand production. And even individual manufacturers that capacity doubled than the beginning of the year, and will continue to expand production. In this regard, the research institutions expected, LED chip production capacity will be gradually released in the fourth quarter of this year, when the LED chip prices will have some downward pressure.
In addition, after MOCVD equipment are in the hands of European and American enterprises, the domestic manufacturers to purchase equipment costs higher. Domestic MOCVD equipment research and development and production are also being carried out, and through the domestic chip manufacturers after the test, will gradually replace some foreign equipment, put into production operations. While the domestic production of MOCVD equipment prices are relatively lower, but also help to promote the LED chip prices.
Although the current LED chip production is still unable to meet the needs of the downstream application level, the price in the short term or difficult to decline, but with the release of production capacity will help ease the tight supply and demand situation. Moreover, the expansion of the formation of the scale effect will also reduce product costs, coupled with the decline in equipment costs and other factors driven, LED chip prices are expected to decline.