LED industry pattern shows polarization trend

The LED industry is a mature industry. After the formation of the upstream chip giant pattern in 2017, the competition will shift from simply assembling production capacity to paying equal attention to technology and scale; In 2017, the prices of chips and packaged devices still have room for increase, while the prices of LED application products have little room for decrease. It is expected that the growth rate of the market scale of the LED industry will rise from about in 2016. After nearly two years of fierce commercial war, the prices of some chips and lamp bead products in the LED industry will rise. According to the prediction of Luo Huanta, a person in the LED industry, the price increase of LED may be difficult to sustain, and the concentration of LED industry may increase in the future. The LED industry is a mature industry. After the formation of the upstream chip giant pattern in 2017, the competition will shift from simply assembling production capacity to paying equal attention to technology and scale; In 2017, the prices of chips and packaged devices still have room for increase, while the prices of LED application products have little room for decrease. It is estimated that the growth rate of LED industry market scale will drop from about 10 in 2016 to less than 5 in 2020. In addition, LED's future industry scale advantages and brand advantages will become increasingly obvious, and industry concentration will increase rapidly, which provides broad growth space for leading enterprises. Judging from the performance of the three quarterly reports that have been published so far, the LED industry has shown a trend of performance differentiation between Chinese and foreign enterprises. In the LED epitaxial chip link, the performance of Chinese enterprises represented by Sanan Optoelectronics and Huacan Optoelectronics has maintained steady growth; In the LED packaging process, the packaging factories represented by Jason, Hongli Zhihui and Guoxing Optoelectronics all showed a situation of increasing revenue and profits in the first three quarters. On the lighting application side, the domestic large factories represented by sunshine lighting and Foshan Lighting are not affected by market competition. Through automatic production line introduction, supply chain and management cost control, both revenue and net profit show a two-way growth trend. However, in contrast, large international factories including CREE and Philips have experienced weak growth in revenue and net profit, even negative growth.