LED industrial structure changes, lighting applications grow rapidly

NPDDisplaySearch, a market research institution, pointed out that the 2013 financial report released by various LED companies in succession recently can be analyzed. Compared with 2012, 2013 is indeed a year when the LED industry began to reverse. however, overall, the growth and profitability of downstream packaging is higher than that of upstream chips. NPDDisplaySearch summarizes 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 relatively small, and it is more flexible in the use of funds. It is also easier to make alliances in different industries and develop new businesses. After further analysis of various companies, NPDDisplaySearch found that the industrial structure is gradually moving towards Evergrande, the big one. The turnover of the three big companies accounts for more than 70% of Taiwan's overall LED industry. What we can foresee is that, the merger or closure of the factory will continue to occur in the next few years, and the overall LED wafer factory in Taiwan will only have 1 ~ Three, 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 2012 and 2013, reaching a quarterly price cut of 15. 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, different types of lighting systems will appear in the future lighting market except for the replacement market. The Replacement and penetration rate of non-accidental lamps will be greatly improved. from 2012 2. 8 improved to 5 in 2013. 5, the annual growth rate is about 1 compared with 2012. 96 times. NPDDisplaySearch analyzes that the main growth power of commercial lighting comes from bulb lamps and lamps. As commercial lighting applications are turned on 24 hours a day, for example, basement or lane 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 industry of various companies. only small-scale companies with flexible business models can survive. However, after 2014, due to the merger and strategic integration of wafer factories, the closure of packaging factories or the extension of brands and channels to the downstream, large-scale companies entered the lighting market with various resources including brand advantages and price advantages. and in line with the government's formulation of safety regulations and standards for LED lamps, it is foreseeable that the market will reshuffle. As the application of lighting grows year by year, it will also affect the entire LED lighting supply chain and change.