In recent years, China's LED epitaxial chip industry has developed rapidly with the continuous expansion of LED application fields.
According to industry data reports, from 2009 to 2011, the scale of the domestic LED epitaxial chip industry rose from 2. 3 billion yuan to 6. 5 billion yuan, with an annual compound growth rate of 68. 11.
2012 China LED epitaxial chip industry scale further growth to 8 billion yuan is 2011 growth the 23. 08.
With the realization of investment capacity and the improvement of enterprise products in recent years, the output value of epitaxial chips will increase significantly in 2013, and the market size of epitaxial chips will exceed 10 billion yuan.
In 2014, what direction will the LED epitaxial chip industry develop?
Xiao Bian summed up four conjectures of LED epitaxial chip industry in 2014.
Conjecture 1: leading enterprises continue to accelerate the pace of mergers and acquisitions 2013 is a war of mergers and acquisitions for San'an Optoelectronics and Dehao Runda.
In fact, this war began in 2012 and did not end with the end of 2013.
Starting from November 2012, Sanan Optronics began to purchase Pangyuan Optronics. Until October 8, 2013, the registration procedures for Sanan Optronics to subscribe for Pangyuan Optronics had been completed.
This year-long acquisition case is not a merger case of Sanan Optoelectronics. In June 5, 2013, Sanan Optoelectronics acquired LuminusDevices, Inc. Obtained 151 patents of the company.
Similar to San'an Optoelectronics, Dehao Runda also experienced a long march merger process.
On December 26, 2012, Dehao Runda announced that the total price was about 13. 0. 4 billion Yuan won NVC Lighting, a total of 20. 05 shares.
On April 2, 2013, dehaourunda confirmed the rumor in the industry that the sales of dehaourunda LED products will all be integrated into NVC Lighting operation center.
This shows that Dehao Runda began to use NVC Lighting to expand the indoor LED market;
On August 29, 2013, Dehao Runda announced that it would jointly invest with NVC Lighting to set up a company in Huizhou city, Guangdong province, mainly engaged in LED packaging business.
The merger of Dehao Runda is involved in every link of the LED industry chain.
For the LED epitaxial chip industry, it is in the Warring States period in recent years.
2013 is only the beginning of the accelerated merger and reorganization of Sanan Optoelectronics and Dehao Runda. I believe that this pace will continue to accelerate in 2014.
Conjecture 2: Market challengers continue to launch expansion plans. In addition to San'an Optoelectronics and Dehao Runda leading enterprises, there are also challengers in the LED epitaxial chip industry.
When the industry leaders are carrying out horizontal and vertical mergers in full swing, challengers represented by Huacan optoelectronics are expanding their scale and seizing more market share.
On October 22, 2013, Huacan Optoelectronics announced that it plans to invest 3. 0. 5 billion yuan to build Huacan Optoelectronics (Suzhou)
Limited the company LED epitaxial wafer chip phase II project the project plan formation annual output of 480 thousand of 2 inch red yellow LED epitaxial wafer (For personal use)
And the production capacity of 15. 4 billion red and yellow light chips.
With the integration of the industry, the epitaxial chips will gradually gather, and the chip supply will concentrate on several large leading enterprises. The old chip manufacturer Dalian Lumei will disappear from the market because of lack of progress.
Knowing that there are tigers in the mountain, I prefer to go to hushanxing. With the further application of LED lighting in 2014, I believe more market challengers will choose to expand their production to seize market share and maintain their competitive position.
Conjecture 3: more enterprises will withdraw from the market. With the increase of reshuffle, in the next three years, some chip enterprises will participate in horizontal integration and some enterprises will gradually withdraw, the remaining enterprises will participate in the vertical integration of the middle and lower reaches of the industry.
Market competition will slowly eliminate some enterprises with poor quality, or no technical ability, or no characteristics.
In the past two years, many well-known enterprises in the industry have withdrawn from the market.
Among them, xurui optoelectronics and Ruineng were acquired, and yaweilang, Shanghai Lanbao and Dalian Lumei successively withdrew.
At present, the pattern of LED upstream industry in mainland China has gradually become clear. Seven listed companies headed by San'an Optoelectronics and Dehao Runda have initially formed an echelon, and the remaining non-listed dozens of chip companies are the second echelon.
However, in addition to Hualei Optoelectronics, Shanghai Blu-ray and Inspur Huaguang, most of the companies are small in scale and weak in technology, and the future will inevitably be the object of mergers and acquisitions.
There are many reasons for the bankruptcy of upstream chip enterprises. Internal management loopholes, vicious competition in the industry and mistakes in enterprise decision-making will all lead the company into trouble.
Dong Zhijiang, chairman of Wuhan Diyuan Optoelectronics, once said that the knockout of the LED upstream industry has just begun, and more smaller chip manufacturers may face the outcome of being eliminated in the next two years.
Dong Zhijiang believes that unless the company relies on its own advantages to find a suitable market segment and achieve profitability, it is difficult for chip manufacturers with small scale and lack of capital chain support to survive these two years.
Conjecture 4: IPO will open or bring new financing channels. IPO will restart in January 2014. At present, 4 of the 83 existing enterprises belong to LED industry, but they are all concentrated in packaging and application fields.
For upstream chip companies, Hualei Optoelectronics, Shanghai Blu-ray and Inspur Huaguang launched the listing plan many years ago, at least because of the suspension of the IPO.
In 2013, China's capital market carried out profound reforms, with IPO suspended, registration system replacing approval system, financing bonds for small and medium-sized enterprises, etc. In 2014, with the Restart of IPO, the financing channels in the capital market became more perfect.
For the highly competitive upstream chip industry, financing in the capital market is inevitable.