Industry accelerates the reshuffle of LED company expansion scale
Knowing that there is a tiger in the mountains, it is biased toward Hushan. The epitaxial chip industry upstream of LED is performing this scene. Huacan Optoelectronics announced on October 22 that it plans to invest 305 million yuan to build the second phase of LED epitaxial wafer chip of Huacan Optoelectronics (Suzhou) Co., Ltd.
However, according to LEDinside statistics, as of the end of 2012, the number of MOCVD equipment in China exceeded 900 units, but the MOCVD capacity utilization rate was less than 50%, indicating that China's LED epitaxial chip production capacity has been surplus. Analysts believe that the purpose of enterprise expansion is to reduce costs by expanding the scale to cope with the increasingly fierce elimination war.
Expansion of production scale Huacan Optoelectronics announced that the above project plans to form an annual production capacity of 480,000 2-inch red-yellow LED epitaxial wafers (for own use) and 5.4 billion red-yellow chips. At the same time, the company increased the capital of Huacan Optoelectronics (Suzhou) by 50 million yuan to supplement the construction needs of the first phase of the project. The person in the securities department told the reporter of "Daily Economic News" that the capacity of the first phase of the project can come out in the fourth quarter. The second phase is only to propose feasible proposals, specifically to be approved by the shareholders meeting.
The person said that the chip needs to be sold in three colors. The first phase of the project is mainly blue-green light chip, the second phase is red and yellow light, and the company customers also hope to be able to support sales, so that the quality can be more stable.
In addition to the pairing problem, Huacan Optoelectronics also considered the scale effect. The announcement shows that the reason for the expansion is to give full play to the scale effect of Huacan Optoelectronics (Suzhou) to reduce production costs.
According to the above-mentioned securities department, the scale, such as the number of devices, is still relatively small compared with other companies.
Just a few days ago, Guangdong Ganhua (000576, closing price of 8.39 yuan) in the transition period told the media that the company's 10 MOCVD54 tablets have been put in place and it is expected to be trial production before the end of the year.
Guoxing Optoelectronics (002449, closing price of 8.47 yuan) announced in September this year that it plans to raise 630 million yuan for the construction of the National Star Semiconductor Epitaxial Chip Project (Phase II) and supplement the company's working capital.
Liu Di, the director of Guoxing Optoelectronics, said in an interview with the "Daily Economic News" that the company plans to invest in two or three phases of the investment of National Star Semiconductor. The first phase is 20 devices, and the second phase is also 20. She also stressed that the company hopes to have a scale effect.
However, from the current point of view, the domestic and international production capacity of the chip is already in a surplus state. According to LEDinside statistics, in 2012 China's MOCVD capacity utilization rate was less than 50%. Despite the recovery of the LED middle and lower parade this year, the sales of upstream epitaxial chips have been driven to some extent. However, according to the reporter, the overall production capacity is still to be digested.
There will be results in the knockout rounds in a few years. Liu Di said that each company's positioning is different. Guoxing Optoelectronics itself is packaged and can digest some upstream chip production capacity.
In June of this year, the chairman of Dehao Runda (002005, closing price of 8.24 yuan) said in a forum that the epitaxial chips upstream of LED could not escape the law of semiconductor industry development in the future. There may be only 3 to 5 LEDs left in the world. Epitaxial chip companies, even two.
Wu Yulin, president of Foshan Lighting Association, said in an interview with the "Daily Economic News" that the concentration of enterprises in the LED epitaxial chip industry is very high, the scale is getting bigger and bigger, and the price is getting lower and lower.
He believes that the reason why LED companies still choose to expand when the epitaxial chips are already surplus, is to hope to occupy the cost advantage in the scale effect, to gain a certain market share, and to cope with the intensified knockout.
Wu Yulin said that the LED industry's big reshuffle trend is from upstream to downstream, so in the next few years, epitaxial chip leading companies will be able to show up, and other companies may be eliminated.
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