LED manufacturers have expanded production and accelerated supply chain integration

The temptation of strong demand for LED application market has accelerated the pace of capacity expansion of midstream packaging plants. It is understood that since the first half of this year, most mainstream LED packaging factories in mainland China and Taiwan have launched or planned a new round of expansion. Recently, Lunda Electronics said that in order to break through the bottleneck of packaging capacity, Lunda plans to increase SMD packaging capacity from 1 billion to 1. 4 billion per month. Based on this calculation, the expansion of Lunda packaging capacity is as high as 40. is expected to 3rd quarter capacity is expected to have release and gradually contribution revenue. However, Yiguang electronics also said earlier that the company plans to expand the monthly capacity of EMC packaging to 0. 1 billion in 2014, with a capacity of. On the mainland, Guoxing Optoelectronics announced on March this year that it plans to change the use of 60 million yuan of funds raised in the new plant and power construction projects of the raised funds investment projects to expand the packaging capacity of LED display screens. Recently, zhaochi shares also announced that it plans to invest 0. 5 billion yuan to establish Jiangxi zhaochi energy-saving lighting Co. , Ltd. to expand the production capacity of LED backlight, lighting packaging and other products. Jason also made it clear years ago that his LED packaging device could produce 13 billion pieces per month by the end of 2013, and it is estimated that the monthly production capacity will increase to 20 billion pieces in the same period in 2014. In addition, many executives including Hongli Optoelectronics, smade optoelectronics and Changfang lighting also said that there are plans to expand production this year. In fact, the trend of the LED packaging industry to expand production this year can be confirmed by equipment manufacturers who are an important part of the supply chain of packaging manufacturers in the middle reaches. In the first half of this year, our shipment of light splitting equipment reached 800- Orders for 900 units and more than 600 units have been scheduled until the end of this year. Zhao Yutao, general manager of Shenzhen xuanshuo Optoelectronics Co. , Ltd. , which has been committed to the manufacture of LED packaging back-end equipment, said that in the first and second quarters of this year, basically the domestic first-line packaging manufacturers have placed large quantities of equipment purchase orders. everyone is actively expanding production. In the view of Tan Yi, deputy general manager of an Puguang, the LED packaging factory must expand its production capacity when it is bigger, otherwise the scale advantage and price advantage will be difficult to reflect. In addition to actively expanding production, some LED packaging manufacturers frequently opened another big move in the first half of this year is to step up the signing of supply and demand agreements with upstream chip factories and establish an offensive and defensive alliance. In March this year, Sanan Optoelectronics and jufei Optoelectronics signed a 'strategic cooperation agreement' stating that jufei Optoelectronics will purchase about 0. 2 billion yuan of LED chips from Sanan Optoelectronics from March 2014 to March 2015. Less than two months later, Suzhou xinnajing, a subsidiary of xinhaiyi Holdings, signed a nine-month '5. 85 million strategic procurement cooperation agreement' with Changfang lighting, with a monthly contract value of 2014 yuan. the total contract amount is 52. 65 million yuan. Then, on May 20, Huaian Aoyang Shunchang Photoelectric Technology Co. , Ltd. , a subsidiary of Aoyang Shunchang, signed the strategic cooperation agreement with mulinsen Co. , Ltd. the two sides of the agreement will carry out strategic cooperation in market information, product research and development, technical support and product supply. Jason will continue to purchase LED chips from Huai'an Optoelectronics, with a total amount of not less than 0. 4 billion yuan within two years. Deng Shoutie, the secretary of Hongli Optoelectronics, also said in an interview with the media that the signing of the supply and demand cooperation agreement is indeed helpful to both parties. Hongli Optoelectronics does not rule out the possibility of such a plan in the future. It is noteworthy that some domestic second-line LED packaging manufacturers are also considering strengthening cooperation plans with upstream chip manufacturers. In establishing strategic supply and demand cooperation with upstream chip factories, Smad Optoelectronics also has relevant plans in the near future. Zhang Luhua also admitted that establishing a binding relationship with suppliers can obtain more reliable chip resources, supply is relatively stable, and cost control can be further strengthened. It is not difficult to see that the LED packaging factory has chosen to step up its strategic cooperation with upstream chip suppliers at this time. On the one hand, due to the tight demand for LED highlight chips since the first half of the year, the two sides have ensured a stable supply relationship. On the other hand, domestic packaging factories have begun to pay attention to the integration of upstream and downstream supply chains. In particular, the current era of simple price competition has gone away, and the quality and reliability of products are gradually becoming the focus of market attention. Domestic LED packaging factories have to seek more long-term and stable chip suppliers. only in this way can we further strengthen cost control and quality control and continuously improve the competitiveness of our products in the market in the future.