LED downstream market adds new power to the industry chain

Continuing the hot market last year, the LED industry was popular in the capital market. The logic behind the market speculation is that incandescent lamps will be banned in the United States from 2014, and LED lighting is expected to copy the European market last year. Industry insiders admit that the US sales channel is different from domestic, and market development is not easy. Despite this, Guan Yong, general manager of sunshine lighting, is still optimistic: In 2014, the profits of the whole industry increased by at least 20. Blue-chip the company performance will double 2013 LED lighting products in commercial lighting and home lighting field shine LED indoor lighting application the first time beyond outdoor landscape lighting to more than 80 of speed growth. The popularity of downstream lighting also benefits the middle and upper-stream enterprises in the LED industry chain. This year, commercial lighting will blossom and bear fruit, and home lighting will start quickly. Guan Yong is full of confidence in this year's market at the high-tech industrial investment strategy meeting. He believes that the opening of the downstream market will bring huge profits to the entire industrial chain, and the overcapacity of upstream chips has been effectively alleviated. In the past few years, local governments have introduced subsidy policies for imported LED epitaxial chip production equipment, resulting in a large number of outsourcing production equipment by upstream chip manufacturers, resulting in local production capacity exceeding the supply of lion medium and low power chips). However, the LED lighting market started last year and digested some of the production capacity. At present, the chip market is basically balanced. Zhang Xiaofei, president of Gaogong LED, said in an interview with reporters. Under this situation, Sanan Optoelectronics, a leading domestic chip manufacturer, recently launched a private placement to raise funds, doubling its original production capacity. For good enterprises, the profits in 2014 should at least double, and enterprises with a profit growth rate of only 50 may have problems. Guan Yong believes that the LED sector in the capital market experienced a round of gains last year, and most listed companies can fulfill market expectations this year. However, under the general trend of industry integration, small enterprises with weak financial strength will have a crisis. The traditional packaging manufacturers are facing a crisis. The director of Ruifeng Optoelectronics Technology, Xiaoming, has a premonition of the crisis in industry integration, but he believes that the crisis does not come from capital but from technological changes. With the transformation of Packaging Technology, traditional packaging enterprises will face a survival crisis. Pei Xiaoming said that chip-level packaging technology is beginning to rise in the industry at present. After this technology matures in the future, it may occur that upstream chip manufacturers directly skip packaging manufacturers to provide lamp beads to downstream application manufacturers, traditional packaging manufacturers in the middle reaches will be short-circuited. The integration of chip manufacturers and packaging manufacturers is an inevitable trend in the industry. Pei Xiaoming believes that at present, some manufacturers have begun to try to integrate the upper and middle reaches of the industrial chain, and some enterprises even have the integration of the whole industrial chain. For example, the chip manufacturer Tongfang shares recently acquired the Hong Kong Stock Company Zhen Mingli and expanded downstream. Guan Yong believes that the real purpose of TongFang's acquisition of zhenmingli is to take a fancy to the company's sales channels in overseas markets. The company's lighting products once accounted for 50% of overseas markets. Talking about the US market, Guan Yong said frankly: The US sales channel is mainly supermarkets, and domestic brands are difficult to enter the United States. At present, in the US market, the old lighting brands Philips, Osram and other products are still relatively strong, and LED lighting companies are also more prominent. Domestic companies enter the US market, mainly based on OEM. Analysts believe that the OEM model is the process of the transfer of LED lighting production capacity in the United States to China. Although the profit margin is low, there is still room.