LED industry set off a heat wave, industry's high growth and mergers and acquisitions integration

The LED industry has set off a heat wave. High growth in the industry plus mergers and acquisitions and integration. In the year, the LED industry maintained a trend of high growth. The luminous efficiency of LED lighting products has increased, and sales have maintained a rapid growth trend. Downstream product prices and costs have decreased simultaneously, corporate profitability has begun to stabilize, and the entire industry is in a period of rapid growth. In addition, there will be a wave of mergers and acquisitions in the upstream of the LED industry this year. With the withdrawal of a group of LED chip and packaging companies, the concentration of the upstream market is expected to increase this year, and leading companies have technological advantages and economies of scale. Thanks to the prohibition/banning of incandescent lamps by governments of various countries and the decline in the price of LED lighting products, the LED lighting market is expected to achieve rapid growth in the year, with a year-on-year growth rate of .%. As the world's second largest LED lighting market, China has grown by more than% year-on-year, making it one of the fastest growing markets in the world. At the same time, the LED penetration rate of my country's physical channels in the first half of this year has reached %, and the sales of e-commerce channels have doubled. These have laid a solid foundation for the outbreak of my country's LED lighting market. The second is the street lamp market. At the same time, my country's LED street lamp market will reach 100 million yuan in annual growth, a year-on-year increase of %, and the market potential is huge. LED small-pitch screens, as a substitute for traditional large-screen splicing products larger than one inch, have brought market opportunities of more than 100 million yuan for LED screen manufacturers. With the increase in domestic market penetration, overseas markets will become the focus of competition for powerful Chinese manufacturers, and companies with good product quality and overseas sales experience will gain first-mover advantages. Under the background of the rapid development of the industry, the development of the LED industry has shown three major changes, and the advantages of mainland enterprises have begun to highlight. First of all, the year-on-year growth rate of annual operating income of land-funded LED chip and packaging companies is better than that of their Taiwan counterparts, and the gap is large. This shows that the balance of power between mainland and Taiwan LED companies has been reversed. Mainland companies can use geographic and cost advantages to gain The rise of the mainland lighting market has gained more shares, thus squeezing the development space of Taiwan counterparts. Secondly, the global influence of mainland LED chip manufacturers is increasing. It is estimated that about% of the annual new MOCVD equipment will come from mainland-funded enterprises. After the expansion, the total production capacity of leading mainland chip companies will exceed% and the mainland LED chip industry Market concentration has also increased. The total market share of the top five chip manufacturers has reached %, an increase of one percentage point from the previous year, and a pattern of multiple oligarchs in the industry has formed. * Later, due to the low market concentration of the LED packaging and application industry and fierce industry competition, mergers and acquisitions will become one of the main ways for industry leaders to develop. Mergers and acquisitions and integration help the growth of the LED industry In 2009, the domestic LED chip industry increased its integration efforts, and small companies are gradually withdrawing. The scale effect of the LED chip link is significant, and the requirements for capital investment and technology research and development are high. Small companies have become the targets of mergers and acquisitions or withdraw from the industry. Over the years, some well-known LED chip companies such as Dalian Lumei, Shanghai Lanbao, Fangda Guoke, etc. Withdrawal from fierce competition. Correspondingly, leading LED chip companies will further increase their production expansion. According to relevant statistics, domestic MOCVD is expected to increase units this year, mainly due to the expansion of the top-ranked leading companies, and the total number of MOCVD will reach about Taiwan. The LED chip industry emphasizes technological strength and scale effects. Based on this, leading companies are gradually eroding the market share of competitors. It is expected that the annual competitive situation will be more conducive to larger LED chip companies. Although chip prices are still declining to a certain extent, with the concentration of market share and the increase in equipment operating rate and product yield of enterprises, it is expected that the profitability of leading companies will gradually recover from the trough.