2016 China LED industry price, technology, market trends at a glance

The LED industry chain mainly includes raw materials, equipment, upstream chip manufacturing, midstream LED packaging and downstream LED applications. The downstream LED applications are mainly divided into LED lighting, LED display and LED backlight applications. LED applications are an important part of the entire industry chain that can bring high added value. Currently, the largest market for LED downstream applications is the lighting sector, followed by backlighting applications and displays. The scale of display applications still maintains a relatively stable and rapid growth trend, especially with the maturity of small-pitch LED display technology, LED display applications will gradually move from outdoor large-size display applications to indoors, and the application fields will be significantly broadened, and the future is expected. In the next few years, it will maintain a very high growth rate, which will make the proportion of LED display in the entire downstream application industry chain gradually increase. Analysis of the development of the whole industry chain in the middle and lower reaches of the LED The data show that the output value of China's LED industry in the first quarter of 2016 reached 109.7 billion yuan, a year-on-year increase of 23.1%, and the year-on-year growth rate has accelerated. Among them, the output value of LED chips, LED packages and LED applications in the first quarter was 3.34 billion yuan, 17.62 billion yuan and 88.73 billion yuan, respectively, up 13%, 16.7% and 24.9%. The growth rate of the middle and lower reaches of the LED is obvious, and the growth rate of upstream chips and midstream packages is lower than the average growth rate of the industry, which is still affected by market price competition. Price trend: LED chip prices will not change much in the second half of 2016. Due to the weakening of international market demand and the slowdown of China's economic growth, the LED industry presents product homogeneity, price competition, and mergers and acquisitions. Integration of normalization and other characteristics. In 2015, the new capacity of mainland LED chip manufacturers continued to be released, and the proportion of oversupply in the market was as high as 20%. In the first quarter of 2016, due to the adjustment of production structure by inventory and chip companies, the overall capacity utilization rate of the industry declined. In addition, the price of LED lighting chips dropped significantly last year. In the first half of this year, some corporate chip prices rebounded slightly. Although international companies such as Jingdian, Samsung and CREE have made the decision to selectively reduce production, domestic Huacan Optoelectronics, Aoyang Shunchang and other enterprises have been in a state of full production. The overall supply and demand pattern of the market has not changed, and it is still in oversupply. status. With the completion of the product structure adjustment and market demand in the second half of the year, the overall price of the chip will remain stable. ● In the first half of 2016, the dry photoelectric blue-green chip project was put into production, and the production capacity of the company's blue-green chip products will be gradually released in the second half of the year. ● In the second half of 2016, the Aoyang Shunchang Phase II LED epitaxial wafer and chip project will be completed, and the production capacity is expected to double at least. ● In the second half of 2016, the chip leader Sanan Optoelectronics Investment Project Xiamen Sanan Optoelectronics Co., Ltd. is gradually releasing its production capacity. The company has invested in 28 chambers of MOCVD equipment (equivalent to 56 units of 2-inch and 54-inch machines), including investment in March. The production capacity of 12 chambers will be reflected in the second quarter, and the remaining equipment will be put into production as soon as possible, and the production capacity will be further expanded. ● In May 2016, Huacan Optoelectronics invested a total of 6 billion yuan in LED epitaxy, chip and sapphire processing projects, and officially launched the groundbreaking ceremony in Zhejiang Yiwu Industrial Park.

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