LED enterprises expand production and scale to cope with severe competition1

Knowing that there is a tiger in the mountain, it is biased towards Hushan, and the epitaxial chip industry upstream of the LED is staged this scene. Huacan Optoelectronics announced on October 22 that it plans to invest 3. 0. 5 billion yuan to build Huacan Optoelectronics (Suzhou) The second phase of LED epitaxial wafer chip project of Co. , Ltd. However, according to LEDinside statistics, by the end of 2012, the number of MOCVD equipment in China had exceeded 900, but the utilization rate of MOCVD capacity was less than that year, indicating that the capacity of LED epitaxial chips in China was already excessive. 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 spell scale Huacan photoelectric announcement display 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. At the same time, the company's Huacan Optoelectronics (Suzhou) The capital increase is 50 million yuan to supplement the construction needs of the first phase of the project. According to its securities department, the first phase of the project can be produced in the fourth quarter, and the second phase is only a feasibility proposal, which must 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, and the second phase is red and yellow light. The company's customers also hope to be able to sell together, so that the quality can be more stable. In addition to the pairing problem, Huacan Optoelectronics also considers the scale effect. The announcement shows that the reason for the expansion is to give full play to Huacan Optoelectronics (Suzhou)Scale effect to reduce production costs. The above-mentioned securities department said that the scale, such as the number of equipment, is still less than other companies. Just a few days ago, a person from the Guangdong Ganhua securities department, who is in the transition period, told the media that the company's 10 MOCVD54 machines have been put in place and are expected to be trial-produced before the end of the year. Guoxing Optoelectronics issued an announcement in September this year this year to propose an increase of 6. 5%. 0. 3 billion yuan for Guoxing semiconductor epitaxial chip project (Phase II)Build and supplement the Company's working capital. Liu Di, the secretary of Guoxing Optoelectronics, said that the company plans to invest in Guoxing Semiconductor in two to three phases, with 20 units in the second phase and 20 units in the second phase. She also stressed that the company hopes to have a scale effect. However, from the current point of view, domestic epitaxial chip production capacity is already in a state of excess. According to LEDinside statistics, China's MOCVD capacity utilization rate in 2012 was less than 50%. Despite the recovery of the middle and lower reaches of the LED this year, it has driven the sales of upstream epitaxial chips to a certain extent. However, according to the reporter, the overall production capacity is still to be digested. Liu Di said that each company's positioning is different. Guoxing Optoelectronics itself is packaged and can digest part of the upstream chip capacity. In June this year, the chairman of Dehao Runda said in a forum that the epitaxial chips upstream of LED could not escape the rules of the development of semiconductor industry in the future, and there may be only 3 to 5 LED epitaxial chip enterprises left. even 2. Wu Yulin, president of Foshan Lighting Association, said that the concentration of enterprises in the LED epitaxial chip industry is very high, the scale is getting larger and larger, and the price is getting lower and lower. He believes that the reason why LED enterprises still choose to expand under the condition that epitaxial chips are already surplus is that they hope to occupy the cost advantage in the scale effect in order to obtain a certain market share. in response to the increasingly fierce knockout. Wu Yulin said that the major reshuffle trend of LED industry is from upstream to downstream, so in the next few years, the leading enterprises of epitaxial chips can appear, while other enterprises may be eliminated.