LED industry has entered a period of rapid development

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. Starting 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 at that time. In the next two years, the demand for LED bulbs in China will see explosive growth. At present, many large LED chip factories are rushing to purchase MOCVD from upstream equipment manufacturers, and upstream chip enterprises such as Sanan Optoelectronics and Huacan Optoelectronics continue to expand production, which shows the extraordinary LED prosperity. Sanan Optoelectronics invested 200 yuan to purchase MOCVD equipment, increased to units, and Huacan Optoelectronics invested. 0. 8 billion expansion of epitaxial wafer production capacity, Guoxing Optoelectronics is expected to increase packaging capacity by 0. 5 billion in the middle of this year. In addition, qinshang Optoelectronics plans to invest to expand its main business. With the approaching of the outbreak point of the LED lighting market and the intensification of competition in the industry, the battle for the consolidation of the LED industry will become more and more fierce, either warming up in groups or combining with strong forces, the two-way cooperation intention between enterprises is more and more obvious. For the integration direction, there is no unified path in the industry. Prior to this, dehaorunda took charge of Rexroth lighting and completed the merger and acquisition of industrial chain integration; Chip manufacturer Tongfang shares skipped the package and directly acquired the downstream lighting application factory Zhen Mingli. Sanan and sunshine lighting are also vertically integrated upstream and downstream to open up the entire LED industry chain. Ruifeng Optoelectronics, as a packaging manufacturer, 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 its 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.