"High-definition LED screens become the main product in the market" Last year, there was good news for high-definition LED screens. Every LED screen manufacturer took high-definition LED screens as the main development and main product. The high-definition LED screens are seamlessly spliced, and the size can be flexibly designed. Provide a variety of video input ports, security, video conferencing, and monitoring have a great demand for high-definition LED screens. At present, my country's LED screen market is in the stage where downstream applications continue to increase market penetration, among which high-definition display and automotive LED screens are gradually recognized by the market and have good development opportunities. This market segment will become an important support for the future output value of the LED screen industry, and it is also an important area for the expansion and development of LED screens.
The global LED screen industry is booming, and the prices of some products have been raised one after another. Although the overall LED screen production capacity is still in oversupply, the supply of LED screen grains is tight due to the bullish demand for some applications, especially the rapid growth of high-definition large screen applications. It is estimated that the market size will grow by 30% to 40% in 2017, and will maintain steady growth in the next three years, attracting LED screen manufacturers on both sides of the Taiwan Strait to continue to expand production capacity and strive for business opportunities. As we all know, LED screen is a semiconductor device that can convert computer into light energy, and it also has many advantages including long life, low power consumption, environmental protection, safety and so on. At present, the structure of the upper, middle and lower reaches of my country's LED screen products are manufacturing, packaging and application.
At the application level, it is subdivided into subtitles, display, backlight, decoration and car navigation display, etc., and this level is also the most value-added part of the LED screen industry. In recent years, the high-definition large-screen application market in mainland China has played a major role in driving growth. LED screen manufacturers pointed out that with the expansion of the market, the demand for packaging of high-definition LED screens has grown. The rapid increase in the number of packaging, making high-definition LED screen packaging demand is expected to maintain high growth. my country's LED screen market is in the stage of increasing penetration of downstream applications. According to the development of LED screen field, according to the results of my country's electricity statistics, my country's total power generation from January to November 2016 was 5,370.1 billion kwh, an increase of 4.2% year-on-year. The electricity consumption of the whole society is 5,384.7 billion kwh, an increase of 5% year-on-year, and 14% of the electricity consumption shows this link. Last year, the state also introduced related policies to prohibit the production of high energy consumption. In the future, LED screens will appear in more occasions and in more fields. When the penetration rate reaches a certain percentage, it will save nearly 100 billion kWh of power consumption across the country.
Optimistic about the strong growth of demand for high-definition large screens, LED screen manufacturers on both sides of the Taiwan Strait continue to expand production capacity. Among them, the leading LED screen packaging factory in mainland China, Mulinsen, will expand its production capacity target to 100 billion to 150 billion units in 2017, and focus on high-definition large screen applications. , Accounting for about 60-70% of the new capacity, and another 40% of the new capacity is used for LED screen lighting demand. Mu Linsen estimates that the market demand for LED screen chips in 2016 is about 60 billion pieces, which is converted into about 20 billion pieces of LED screen packages. It is estimated that the demand for chips will increase to 90 billion to 100 billion pieces in 2017. The packaging volume of the applied LED screen is about 10 billion, and the market share is about 50%. With the continuous expansion of production capacity in 2017, the target is to increase the market share to more than 60% in 2017. Looking back at the sales and application data of LED screens last year, my country's LED screen display products accounted for 42% of the domestic market in 2016, an increase of 10% year-on-year, and the production and sales were about 8 billion modules and 3.8 billion modules, an increase of 33% and 35% year-on-year.
In the downstream of the industry, the display market is the largest, followed by other subdivisions such as backlight and large screen. In addition, the high-definition display technology mature market has begun to extend to both indoors and outdoors, and there is a high probability that it will enter a stage of explosive growth. Last year, the scale of my country's semiconductor industry reached 521.6 billion yuan, an increase of 22.8% compared with 2015. Among them, the scale of upstream chip production was 18.2 billion yuan, an increase of 20% year-on-year, and the scale of midstream packaging was 74.8 billion yuan, a year-on-year increase of 100%. 21.5%, the scale of downstream applications accounted for the highest proportion of the entire industry up to 428.6 billion yuan, an increase of 23% year-on-year. The output value of LED screen display reached 204 billion yuan, an increase of 31.5 percent year-on-year, and the output value of high-definition LED screen display was 54.8 billion yuan, an increase of 29 percent year-on-year.
Nationstar Optoelectronics has also successively launched the expansion plan of LED screen packaging, and Jingtai Optoelectronics is promoting the expansion of the second phase of the project. With the accelerated expansion of LED screen packaging factories in mainland China, and the products are mainly high-end specifications such as 2020 or 1010, Coupled with competitive prices, it will continue to expand its market share. Due to the increase in the resolution of high-definition large screens, it has advantages in long-distance viewing, and the application of products has expanded to cinema screens and military applications. Recently, Everlight has received related orders from Korean cinema operators. The product application will further expand to the high-end market, which is expected Drive the continued growth of profits in 2017. Taiwan-based LED screen packaging manufacturer Everlight used to be the largest supplier of high-definition large-screen applications in the world. Although its market share has shrunk in recent years, its main products have expanded to specifications such as 0808 or 1010. After the completion of the new factory in Miaoli, the new Production capacity will also focus on niche products, including high-definition large screens, automotive and invisible light applications.
Ye Yinfu, chairman of EVERLIGHT, expressed his optimism that the high-definition large-screen application market has high growth potential, and the main growth momentum in 2017 will be locked in applications such as high-definition large screens, automotive and infrared LED screens. Overseas, some LED screen companies have made relevant adjustments to their business strategies and shut down some product lines to alleviate excess capacity. Some overseas assets have been absorbed by Chinese companies to expand their own technical strength and channel resources. Industry analysts believe that it is now in the stage of LED screen industry integration, and the supply and demand of the industry are also driving the momentum of the LED screen industry in the future.
In the future, with the expansion of downstream market applications, LED screen-related products will continue to increase in volume and bring more profits to enterprises. .