In the past few years, the LED industry has set off an investment boom, and capital has poured into the LED industry. Due to government policy support and financial subsidies, more foreign capital and laymen have invested in the LED industry, as a result, the LED industry has entered a stage of crazy investment, especially in the upstream field of LED. The planned investment amount of sapphire substrate, epitaxial chip, chip and other projects is huge.
However, in the past two years, crazy investment has produced severe negative effects. As a result, the LED industry has structural overcapacity, serious product homogenization, and the price war has spread all over the country. The LED industry has directly entered the era of low profits.
The low season is not light. The LED industry is looking forward to a blowout period. The revenue of LED enterprises has always been an indicator of the prosperity of the LED industry. Although December is the traditional low season, however, chip revenue in the LED industry chain increased year-on-year in December, and the overall revenue of packaging was. The revenue of major mainstream companies such as Yiguang, Lunda and Jingdian showed a gratifying trend.
Among the major packaging factories, Yiguang's revenue in December was 22. 5%.
NT $0. 6 billion, up year-on-year, benefiting from orders for lighting and backlight sources, the company expects shipments to continue to grow in the first quarter of this year.
Lunda Electronics, on the other hand, benefited from the return of orders for notebook computers, the increased demand for flash lamps from Korean mobile phone manufacturers and TV backlighting, with revenue of 10. In December.
NT $9. 7 billion, down 5. From November. 84, year-on-year growth reached 55.
Among the big chip factories, Jingdian's revenue reached 20. In December. NT $4. 7 billion, down 1. From the previous month. 36, year-on-year growth reached 78. 8.
LED lighting products have outstanding characteristics. Judging from the recent technological development trend, the light efficiency of the light source can reach more than 200lm/w.
At the same time, the selling price of terminal lighting products in the market has continued to decline. The products of Osram, Kerui and other companies have all been reduced to around US $10, while the price of energy-saving lamps of the same brand is about US $5, considering the great difference in service life, the actual use cost of LED lamps is cheaper than that of ordinary energy-saving lamps.
Industry standards need to be issued urgently. 2014 is a crucial year for China's LED development.
With the continuous progress of technology, the brightness of LED light sources is continuously improving, the production cost of LED lamps is continuously decreasing, the price of lamps has fallen into an acceptable range for consumers, and the LED lighting market will erupt in an all-round way.
This can also be seen from the movements of traditional lighting giants.
In 2013, domestic and international giants, even enterprises that have never done LED before, joined the industry one after another.
Everyone is doing it and wants to do it, indicating that the industry is mature, the products are mature, and LED lighting is going to explode. Deng Zichang said.
As for the chaotic situation of industry competition, Deng Zichang believes that there are two things that need the attention of all parties concerned, one is to set industry standards and the other is to establish industry alliances.
Deng Zichang said that the lack of LED industry standards has a long history and needs to refer to traditional lighting industry and international lighting industry standards to formulate LED lighting standards suitable for the Chinese market.
Of course, enterprises can also formulate their own enterprise standards before the industry standards are issued, and participate in the drafting and formulation of national standards as much as possible.
In addition, Deng Zichang said that although there are industrial alliances, channel alliances and price alliances in some industries, in a specific period of time, these alliances play a positive role in promoting the development of the industry and maintaining the market order to a certain extent.
In the face of vicious price competition in the LED industry, Deng Zichang said that as long as the timing is right and beneficial to the company's development, it is not excluded to initiate or participate in some alliances.
The brand battle of LED terminals is gaining momentum. The terminal manufacturers in the downstream of LED all know that brands and channels are magic weapons to win. For packaging enterprises in the middle reaches, brand effect is increasingly becoming the key for them to base themselves on the market.
In the packaging industry with a huge enterprise base, the market pattern is not clear.
This year, the LED industry has warmed up, especially the outbreak of demand in the downstream application market, which may give midstream packaging and upstream epitaxial chip companies plagued by overcapacity a short respite last year.
At the same time, the rapid development of downstream LED lighting puts forward more requirements for epitaxial chips and packages in the long and middle reaches, with excellent performance, higher light efficiency and lower cost, all this is testing the research and development and scale manufacturing capabilities of upper and middle reaches enterprises.
The future market competition will focus on the application field of LED Terminal lighting, but what is more important is to form the Echo and cooperation between the upper, middle and lower reaches of the industrial chain, so as to quickly push the high cost-effective products in the upper and middle reaches to LED lighting enterprises, and accepted by consumers in the terminal market.
For middle-stream packaging enterprises, this is a rare opportunity and the beginning of the gradual formation of the market pattern.
Most packaging enterprises are seeking other methods due to the increasingly low profit margin of single packaging business. Strengthening integration and industrial chain extension have become the contingency measures for most enterprises.