LED industry has entered a period of rapid development1

With the gradual advancement of energy-saving policies and the outbreak of demand in various countries, the LED industry has entered a period of rapid development. From October 1 this year, China will ban the import and sale of incandescent lamps for general lighting of 60 watts or more. From October 1, 2016, the import and sale of incandescent lamps of 15 watts and above will be banned, which basically means that incandescent lamps will be completely discontinued and banned. In the next two years, the demand for LED bulbs in China will usher in explosive growth. At present, many large LED chip manufacturers are rushing to purchase MOCVD from upstream equipment manufacturers. Upstream chip enterprises such as Sanan Optoelectronics and Huacan Optoelectronics continue to expand production, showing the extraordinary LED prosperity. Sanan Optoelectronics invested 10 billion yuan to purchase MOCVD equipment to 200 units, and Huacan Optoelectronics invested 11. . 0. 8 billion expansion of epitaxial wafer production capacity, Guoxing Optoelectronics is expected to increase packaging capacity by 40 in the middle of this year. In addition, qinshang Optoelectronics plans to invest 0. 5 billion to expand its main business. With the outbreak of the LED lighting market approaching, the competition in the industry is intensifying, and the War of the LED industry consolidation will become more and more fierce, or the group will be warm or powerful. the two-way cooperation intention between enterprises is becoming more and more obvious. There is no unified path for integration in the industry. Prior to this, Dehao Runda entered NVC Lighting and completed the merger and acquisition of industrial chain integration. The chip manufacturer Tongfang shares skipped the package and directly acquired the downstream lighting application factory. San'an and sunshine lighting are also vertically integrated upstream and downstream to open up the entire LED industry chain. As a packaging manufacturer, Ruifeng Optoelectronics is more inclined to expand upstream and become a light source supplier. However, Guoxing Optoelectronics has gone in the opposite direction, expanding the lighting field through subsidiaries. In addition to the above-mentioned vertical integration strategy of the company, Huacan is more inclined to do horizontal expansion. Bian Difei, vice president of Huacan Optoelectronics, once said that Huacan may have horizontal integration but will never do vertical extension. The continuous decline in LED prices and the increasing competition among enterprises have prompted the concentration of resources to advantageous enterprises. The LED industry has entered an era of mutual penetration between upstream and downstream.