As we all know, LED lighting is the main driving force for the continued rapid development of the LED chip market. In the future, with the outbreak of the small-pitch market and the continuous rapid growth of the lighting market demand, the LED chip industry will promote steady and rapid growth.
According to the data of the High-tech Research Institute LED Research Institute (GGII), in 2016, the global LED chip market grew by 7.88% year-on-year to reach 44.8 billion yuan. GGII expects that the global LED chip market will reach 51 billion yuan in 2017, a year-on-year increase of 13.8%.
After years of development, China has now become the world's largest producer, consumer and exporter of LED lighting products. According to GGII data, in 2016, China's LED chip market began to pick up, and the market growth rate of chips reached 11.54%. Considering that chip prices have remained basically stable in 2017, the domestic chip manufacturers' sales rate has remained at 100%. And the chip manufacturers have expanded their production. GGII expects that the output value of China's LED chips will reach 30% in 2017.
Large factory capacity gradually released LED chip prices tend to stabilize
As the leading chip manufacturer in China, Ganzhao Optoelectronics, under the strategic guidance of adhering to its main business, coincides with its capacity expansion. Undoubtedly, it will become an important LED chip supplier in the future industry competition.
Jin Zhangyu, chairman of Ganzhao Optoelectronics Co., Ltd. said, “At present, the overall market situation of LEDs is good. The demand grows linearly by about 20% every year. The supply side may be pulsed, but this will bring short-term oversupply. Of course, this process There will be other variables in the supply and demand relationship. For example, after the new production capacity comes up, the original part of the production capacity may be withdrawn due to the low efficiency of production and operation."
Indeed, many chip manufacturers such as Taiwan and South Korea are far less productive than domestic manufacturers because of equipment aging, and even some are gradually withdrawing from the mainland market. It can be foreseen that the state of balance between supply and demand will not change particularly sharply, but there may be short-term fluctuations affecting the downstream level.
In fact, the future trend of chip prices is also determined by the supply and demand relationship of the entire industry. Liu Wenhui, deputy general manager and secretary of the board of directors of Ganzhao Optoelectronics, believes that “the price of chips is on the rise at the beginning of this year, mainly because the supply is far from the demand. Sanan Optoelectronics, Huacan Optoelectronics, Ganzhao Optoelectronics, Aoyang Shunchang, LED manufacturers such as Zhaochi have begun to expand production. As the production capacity is gradually released, the supply will get a certain link, and the price will stabilize in the process."
Judging from the current overall development trend, many LED industry insiders are still optimistic about the industry's prosperity next year. With the release of large manufacturers' capacity, supply and demand have been alleviated. After the release of capacity of large manufacturers is basically completed, if there is no new capacity, the price will not change much.
"We expect that when the new capacity is released in the second half of next year, there will be further changes in the supply and demand relationship, and I believe that the price will change accordingly." Liu Wenhui said.
Expanding blue-green light and accelerating the competitive advantage of red and yellow light
At present, domestic LED chip companies Sanan Optoelectronics, Huacan Optoelectronics, and Ganzhao Optoelectronics occupy a large market share. Among them, Sanan Optoelectronics is the leading enterprise in China, with the largest scale of production capacity and the competitive advantage of technology. In terms of scale, although Ganzhao Optoelectronics is slightly smaller than Huacan, it still has strong competitiveness in terms of profitability. .
Liu Wenhui pointed out that "With the release of our production capacity, the scale effect will be further improved and the gross profit margin will be further improved. In addition, Honghuangguang, as the fist product of Ganzhao Optoelectronics, has certain competitive advantages in the market, with the expansion of blue and green. As a full color manufacturer, in the long run, we hope to become a major competitor in the domestic LED chip field in the future."
It is reported that in July this year, Ganzhao Optoelectronics announced that it will continue to expand the production scale of LED epitaxial chips based on the production of LED epitaxial chips. It plans to invest 5 billion yuan (in two phases) in the new district of Nanchang City, Jiangxi Province. It can realize a blue-green chip production base with a monthly output of 1.2 million pieces (2 inches). It is estimated that the first phase will invest 2.5 billion yuan to build a blue-green chip production base that can realize a monthly output of 600,000 pieces (2 inches). .
At the same time, based on the actual demand for the expansion of blue-green light business, Ganzhao Optoelectronics plans to set up a wholly-owned subsidiary to invest in the expansion of production projects in Xinjian District, Jiangxi Province with a self-owned capital of 300 million yuan.
According to Gaogong LED observation, domestic LED chip manufacturers are relatively conservative in the expansion of red and yellow light compared to the expansion of blue-green light. On the contrary, Taiwanese manufacturers pay more attention to the development of red and yellow light.
"On the one hand, the blue-green chip is the mainstream of LED chips, directly targeting the lighting market. The reason why the blue-green light market is relatively large is that the LED lighting market is relatively large. However, the red and yellow chips will have some high-end applications, such as indicators and displays. On the other hand, blue-green chips are more like large-scale manufacturing, with cost advantages, while red and yellow light has a certain threshold. Taiwan manufacturers and mainland manufacturers compete to upgrade, they are difficult to manufacture on a large scale. The blue-green optical chip field has launched an impact on mainland manufacturers, but it has certain technical advantages in the field of red and yellow light chips." Jin Zhangyu analyzed.
As the largest manufacturer of red and yellow light in China, Ganzhao Optoelectronics has 30 chambers in MOCVD, and has made corresponding layouts in the fields of infrared, vehicle and iris. In the future, as the LED chip technology moves forward, the red and yellow optical chip products of Ganzhao Optoelectronics will have certain advantages as the blue-green light.
Strive for chip market share, 2018 gross profit period
Nowadays, the LED chip industry is in the late stage of industrial integration. According to relevant data, the market capacity of the entire LED chip will be more than 30 billion by 2020, and the output value of this 30 billion yuan is basically divided by several listed companies in mainland China. food".
Jin Zhangyu said frankly, "Our strategy is to strive for the market share and scale of the red, yellow and blue chips in the final stage of production capacity. I hope that in the process of industrial integration and oligarchs, dry photo optoelectronics can also become an important participant. And competitors. As some small factories or manufacturers with relatively low productivity gradually withdraw from the market, the remaining large manufacturers can form a price alliance, thus solving the problems of low return on capital and low investment efficiency of existing LED chips. â€
Throughout the application layout of the entire LED chip industry, blue-green light is used for lighting up to 50%-60%, about 30% for display, others for backlighting or some high-end applications, such as car lighting. More than 50-60% of red and yellow light is used in the display screen, and the other 30% is digital, and some of the remaining ones are used in more subdivided market areas, such as infrared and iris.
At this stage, the production capacity of the red and yellow light of Ganzhao Optoelectronics is consistent with the market distribution, but the scale of blue-green light is still relatively small, and the scale effect has not yet been completed. According to Jin Zhangyu, “At present, our blue-green light production capacity reaches 350,000 pieces/month, and the red-yellow light production capacity reaches 170,000 pieces/month. Under this circumstance, we decided to put relatively small production capacity mainly in the field of lighting. â€
Although major manufacturers are expanding their production of blue-green light, the gross profit margin of blue-green light is not high. Many people in the industry have raised doubts. With the release of blue-green light capacity, the market share will increase, can the gross profit margin be alleviated?
"The overall industry gross profit margin is related to the overall supply and demand relationship of the industry. The supply and demand relationship in 2018 determines the gross profit margin of the entire blue-green chip. After a greater supply, I will be cautiously optimistic about the gross profit margin of the entire industry next year. In addition, the blue-green chip itself has a lower gross margin than the red and yellow chips, because the application of red and yellow chips is less, and the blue-green chip market is larger. Therefore, I personally work for 2018. The gross profit margin in 2019 is optimistic.†Jin Zhangyu finally mentioned.
The 2017 High-tech LED Annual Conference will be held on December 21-22 in Shenzhen Baoan Dunxi International Hotel. At that time, Jin Zhangyu, Chairman of Ganzhao Optoelectronics, will attend the conference as a guest speaker and bring more “dry goods†to the on-site exchanges.
Plug-In Connecting Terminals,Insulated Spade Terminals,Cable Connector Double Spade Terminals,Vinyl-Insulated Locking Spade Terminals
Taixing Longyi Terminals Co.,Ltd. , https://www.longyicopperlugs.com