LED industry chain concentration has increased, supply and demand pattern has changed

On 2017, the start-up day, LED chip leader Sanan Optoelectronics issued a price increase notification letter to the downstream, and some of its products rose by 8. As the leading enterprise of LED chips, San'an Optoelectronics has increased its price, which strongly verifies that the overall supply and demand pattern of the LED industry has undergone a fundamental change. Not only has the supply side contracted due to the elimination of backward production capacity, but also the stable growth of the downstream demand side of LED. profitability has steadily improved. LED chip leaders Sanan, Aoyang and many other LED chip enterprises have been fully producing since the second half of 16 years. Taiwan's leading chip company, Jingyuan Optoelectronics, said that due to the substantial demand for downstream LED, LED backlight, security monitoring, smartphone flash, and automotive products, it has been fully produced since the end of the second quarter of last year. Therefore, this Sanan price increase is reasonable, and it is verified that the overall supply and demand pattern of the LED industry is continuously improving. Since 16 years, LED chips and packages have been rising in price one after another, marking the end of the reshuffle of the overall LED industry chain and the industry's transition from an era of excessive competition to an era of stable returns. After 15 years of reshuffle, the LED upstream chip end has been phased out. Taiwan's leading Crystal and CREE have shut down 25 production capacity, and Samsung and LG have also shut down some production capacity. and in 16 years, domestic government subsidies began to shrink significantly, and domestic new supply expansion fell sharply. At the same time, the downstream domestic ban on Bering has increased the demand for 60LED lighting, and the small-pitch LED has increased by 28. Therefore, it can be observed that the price increase of some chip products has been 5-10; The price increase of some packaged products exceeded 15. This time, some LED chip products in Sanan increased by 8, which once again verified that the overall supply and demand structure of the LED industry has improved. The LED industrial chain concentration is further improved, the industrial chain pattern continues to solidify, and the industry leader benefits deeply. With the further improvement of industrial concentration, the domestic LED chip market will only have 5- Among the 10 large-scale enterprises, the top five chip enterprises in the industry currently account for 65. This is especially true for packaging enterprises. The number of packaging enterprises has dropped from more than 1500 in 14 years to only more than 1000 in 16 years. The concentration will continue to increase in the future. The concentration of LED industrial chain is continuously improving, and the industrial chain pattern continues to solidify. LED upstream chip manufacturers are at the core of the LED industry chain, leading listed companies such as Aoyang Shunchang, Sanan Optoelectronics and so on. After the completion of the second phase of this year, Aoyang Shunchang's total production capacity will reach 800 thousand pieces/month. At the same time, mulinsen's capital increase strategy will become a shareholder of its subsidiaries, helping Aoyang to further consolidate its leading position in LED chips. Recently, San'an Optronics has made continuous actions, completing the second phase of employee stock ownership plan, purchasing nearly 91. 7 million shares, laying out compound semiconductors made of chip materials, and signing the 'development financial cooperation agreement' with CDB. the company focuses on the layout of LED chips, integrated circuits and other fields to accelerate overseas mergers and acquisitions and capacity expansion. Leading listed companies in LED midstream packaging: mulinsen, Guoxing Optoelectronics, Hongli Zhihui, etc. The packaging capital of mulinsen continues to expand, with an increase of 0. 5 billion Australian dollars and 5. 5 billion investment in LED lighting projects. At the same time, it will increase capital or acquire a number of lighting enterprises. In addition, the future packaging plan will have a production capacity exceeding KK/month after expansion. Guoxing Optoelectronics has expanded its production three times in 12 months. The small-pitch production capacity has exceeded 800kk/month, and it has signed a white light patent license agreement with GE, laying a solid foundation for further expansion of overseas sales. Hongli Zhihui will further deepen the lighting packaging field with its product cost performance, and recently push the employee stock ownership plan and the chairman's increase plan to demonstrate the management's confidence to become bigger and stronger. LED lighting and application leading listed companies mainly include Foshan Lighting, sunshine lighting, etc. Foshan Lighting's third quarterly performance surged 281. In the first half of 16 years, sunshine lighting's LED lighting revenue grew by 40 and sales grew by 60. It is expected that LED lighting will be further expanded throughout the year.