In the first half of 2014, the overall performance of LED upstream chip enterprises was good. Since the second half of 2013, the demand for LED chips has maintained a growth momentum. From the fourth quarter to the present, chip prices have fallen very little in three quarters, and the profitability of related enterprises has rebounded significantly. Since 2012, the growth rate of the display screen market has slowed down, and the LED lighting market has gradually improved. Lighting applications have replaced Display screen applications as a force driving the demand of the chip market. Through the perspective of the semi-annual report of the industry, it can be foreseen that there are three types of companies whose future performance is expected to continue to rise and increase profits in the fierce market competition. First of all, the pulling effect of LED lighting on the industry will become more and more obvious, and the profits of enterprises that fully benefit from the prosperity of LED lighting are expected to increase. Secondly, the trend of small-pitch led TV replacing the traditional large screen wall has been established; In addition, under the trend of intensified competition and increased industry concentration, leading enterprises in the industrial chain will fully benefit from the competition pattern of Evergrande. The demand for LED display screen market in 2014 will continue to increase compared with previous years, but the price war is a fate that cannot be escaped. Enterprises will face more cruel knockout matches, and the rest of the industry will be the king. With the survival of the fittest in the market competition, LED display enterprise PK will not stay at the price all the time, but will compete with the comprehensive strength of software and hardware. In the display market in the first half of 2014, small-pitch high-definition large screens are undoubtedly the mainstream of the market. Several large-scale backbone enterprises in the industry are seizing this blue ocean market in real time. For a long time, an important reason why LED display screen cannot compete with commercial large screen products represented by liquid crystal is the gap in display effect. With the introduction of high-density and small-pitch LED products, this short board has been made up to a large extent. It is also because of this that the LED display screen began to have a high-profile confidence.