The rapid rise of full-color LED large-screen light-emitting chips

The rapid rise of full-color LED large-screen light-emitting chips, as the core component of full-color LED large screens, chips are known for their high-end, high profits, and high demand. Big dividends, there is competition in any industry, so there is a staking-style development, and everyone hopes to become an industry leader and accumulate more resources, including land, market share, channels, human resources, etc. As an important link in the upstream of the full-color LED large-screen industry chain, full-color LED large-screen chips have always played a leading role in the development of the industry. The whole body is affected by one incident. The improvement of full-color LED large-screen chip technology, rising costs, and shortage of production capacity all implicate every full-color LED large-screen manufacturer in the middle and lower reaches.

Data analysis of China's full-color LED large-screen chip market. In recent years, the market size, output value and number of companies of full-color LED large-screen chips have maintained a growth trend. According to data, in 2016, the global LED chip market reached 44.8 billion yuan, a year-on-year increase of 7.88%; China's LED chip market exceeded 14.5 billion yuan, a year-on-year increase of 11.54%. In 2017, with the arrival of the fourth quarter, the scale of the LED chip market will expand. It is estimated that the scale of the global LED chip market will increase to 51 billion yuan, a year-on-year increase of 13.8%. The production capacity of Chinese LED chip companies will continue to expand. About 18.9 billion yuan, with a growth rate of up to 30%, will account for 54% of the global LED chip production capacity.

At present, the overall performance of the full-color LED large-screen chip industry is improving, especially in terms of supply and demand balance. The application market continues to expand, and it is natural for leading companies to expand production and increase revenue. However, the trend of industry concentration and elimination is intensifying, and it will be difficult for enterprises to win the end market. Under the ever-expanding market size, the global LED chip output value will also double.

According to data collation, it is found that the compound annual growth rate of global LED chip output value will reach 8% from 2017 to 2020, and the global LED chip output value will exceed 8 billion US dollars by 2020. It can be predicted that in the next three years, global LED chip products will usher in a greater peak of development. It has gradually become an industry trend for leading enterprises to take the lead in expanding production and increasing income. Looking back at the development of LED chips, we can see that industry price changes have never stopped. Price increases, production expansion, and income increase are the main themes of the industry today.

From the previous high profiteering prices gradually falling back, in the past two years, the price increase of midstream packaging manufacturers and the rise in raw material prices have boosted the price of upstream LED chip companies, prompting the entire industry to enter a benign price. LED chip leaders Businesses are profitable. The expansion of China's LED chip market and the increase in the proportion of global production capacity are not surprising. In terms of LED display screens and full-color LED large screens at the two application ends downstream of the LED industry chain, LED chip manufacturers' technological improvements have enabled LED display products to have more Good brightness also meets the needs of higher quality chips for large LED screens. Moreover, LED chips are the core of LED display screens and full-color LED large screens, and account for the highest proportion of cost.

According to industry insiders, LED chips account for 18% of the cost of general-purpose display products, and as much as 70% of the cost of full-color LED large-screen products. In addition, the increase in overseas orders has also made the Chinese LED chip market expand indefinitely, and the output value and global market share have increased significantly. The red sea in the market has already formed, and Shenzhen full-color LED large-screen chip companies will certainly not sit still. Adjusting their own industrial structure and accelerating market layout are the main strategies of many LED chip companies.

For example, on October 22, HC Semitek announced that it intends to invest in the construction of the "4th Phase Project of HC Semitek (Suzhou) Co., Ltd. LED Epitaxial Wafers and Chips" in the Zhangjiagang Economic and Technological Development Zone. The annual output of 9 million LED epitaxial wafers and the production scale of LED chips of different specifications. And LED chip manufacturers such as Qianzhao Optoelectronics, Sanan, and Aoyang Shunchang are all expanding their production plans. In addition, the LED chip Kulim factory built by Osram in Malaysia is about to be completed. The factory covers an area of ​​100,000 square meters and has an excellent geographical location. After the completion of the Kulim factory, it will become the world's largest and most modern 6-inch wafer LED chip Production base.

It is foreseeable that the expansion of LED chip production capacity will become the keynote in the next few years, the competition in the industry will become more severe, and the survival of small and medium-sized enterprises will be more difficult. It is not difficult to see how companies with greater demand than supply can win the competition. The reason why LED chip companies expand production and expand chip extension business on a large scale is mainly based on the current embarrassing supply-demand relationship in the market. An authoritative organization predicts that the compound annual growth rate of the global application market will be 8%.

With the evolution of cost, the number of chips that can be cut by a single epitaxial wafer increases. According to the average annual brightness increase of about 10%, the number of chips that can be cut will increase by 1.1 times, and the market will rise in large quantities. However, the supply side failed to keep up with the pace of the market, the industry's low-end production capacity was gradually eliminated, and outdated equipment could not meet the production demand, resulting in a huge gap between the demand side and the supply side. An enterprise cannot develop without innovation.

Throughout the ages, only companies that keep pace with the times and focus on innovation can survive for a long time and become world-renowned brands. The same is true for LED chip companies. Regardless of the size of the company, its business strategy and development direction determine whether a company has the potential for success. The dual inflow of technology and capital can make the company enter a positive development state. Therefore, whether LED light pole screen chip companies can win in the red sea of ​​the market depends on the company's business strategy and development direction.

However, not every full-color LED large-screen chip company can break free from the torrent of eliminating low-end manufacturing. First, updating equipment requires great technical support and capital injection; second, corporate brand and industry influence require a lot of energy and cost. This may only be a period of transition for large enterprises that have already formed brand influence, but for many small and medium-sized enterprises in the industry, the increasing pressure of industry competition has already overwhelmed enterprises. Nowadays, the concentration of the industry has been strengthened, technological innovation is very difficult, the market is difficult to expand, and the brand suppression of large enterprises has accelerated the elimination of small and medium-sized enterprises.

Recently, Shenzhen's leading full-color LED large-screen chip companies have successively disclosed their performance reports for the first three quarters of 2017. The announcement shows that San'an Optoelectronics' revenue was 6.283 billion yuan, a year-on-year increase of 40%; Qianzhao Optoelectronics' revenue was 87 million yuan, a year-on-year increase of 355 million yuan %; Huacan Optoelectronics' revenue was 187 million yuan, a year-on-year increase of 74.78%. The growth of its performance is mainly due to the strong demand for LED, the expansion of the company's production scale, and the sharp increase in production and sales. Among them, Sanan Optoelectronics continued to lead in terms of performance and revenue.

With the progress of Shenzhen full-color LED large-screen chip production and processing technology and the improvement of product quality, the Shenzhen full-color LED screen chip industry will accelerate the formation of a trend of concentration. Technological innovation will die under the help of the times. At that time, Shenzhen's leading full-color LED large-screen chip companies will dominate the market. .