LED industrial structure changes lighting applications grow rapidly

NPDDisplaySearch, a market research organization, pointed out that the 2013 financial results recently released by various LED companies can be analyzed. Compared with 2012, 2013 is indeed a year when the LED industry began to reverse, however, on the whole, the growth and profit of downstream packaging are higher than that of upstream chips. NPDDisplaySearch summed up three main reasons: 1. National policy intervention, for example, the Chinese government subsidizes the upstream chip production equipment, the subsidy amount is more than 50, the total amount is more than 50 billion, causing Chinese chip manufacturers to grab the market at low prices, eroding the profitability of Taiwan chip manufacturers; 2. The downstream package extends downward from LED component package to brand and application module to improve profitability and turnover; 3. Capital expenditure is less, the use of funds is more flexible, and it is easier to form alliances in different industries and develop new undertakings. After further analysis of various companies, NPDDisplaySearch found that the industrial structure is gradually moving towards Evergrande, the big one. The turnover of the big three companies accounts for more than of Taiwan's overall LED industry. What we can foresee is that, the merger or closure of the factory in the next few years will continue to occur, and the overall LED chip factory in Taiwan will only have 1 ~ 3, and after the wafer factory stabilizes, it can play a positive role in the price of the LED market. It is not expected to increase prices due to shortage, but at least the price cut will not be as sharp as in 2013 and 2012, reaching a quarterly price cut. Looking forward to 2013, the lighting market is growing rapidly, mainly divided into commercial lighting and government subsidized street lamp related markets. The LED lighting market is still the focus of rapid growth and major attention, however, with the price drop and the continuous improvement of technology, in addition to the replacement market, different types of lighting systems will appear in the future. The Replacement and permeability of non-accidental lamps will be greatly improved, by 2012. 8 improved to 5 in 2013. 5 years growth and 2012 compared about for 1. 96 times. NPDDisplaySearch analyzes that the main driving force for the growth of commercial lighting comes from bulb lamps and lamps. Since commercial lighting applications are turned on 24 hours a day, for example, basement or driveway lights are mostly turned on 24 hours a day, the main demand for government Street lamps comes from mainland China and emerging markets, such as Brazil, Russia and Mexico. The rapid penetration of its LED lighting. In the first two or three years, due to the complicated LED specifications and unclear specifications, it is not conducive to large-scale companies, resulting in losses in the lighting business of various companies, only small-scale companies with flexible business models can survive. However, after 2014, due to the merger and strategic integration of chip factories, the closure of packaging factories or the extension of brands and channels to the downstream, large-scale companies brought various resources including brand advantages and price advantages into the lighting market, in addition, in line with the government's formulation of safety regulations and standards for LED lamps, it is foreseeable that the market will reshuffle. Although the application of lighting is growing year by year, it will also affect the entire LED lighting supply chain and change.