Of fire to the LED industry, integration in mergers and acquisitions become the leading development

The LED industry to maintain high-growth momentum in 2015. Keep the lights, LED lighting products sales growth. Downstream products synchronization drop in prices and costs, corporate profitability stabilizing, the entire industry is in rapid growth period. In addition, in 2015 LED industry upstream will merger integration trend, as a group of LED chips and packaging companies, is expected to further improve the upstream market concentration, 2015 leading enterprises with technical advantage and scale effect. Incandescent light bulbs, LED industry continued rapid growth thanks to governments to ban/disable and falling prices of LED lighting products, LED lighting market is expected to achieve rapid growth in 2015, year-on-year growth to 28. 5%. China as the world's second largest LED lighting market rose more than 40% in 2015, is one of the world's fastest growing market. At the same time in the first half of 2014 China entity channel LED permeability has reached 59%, double electric business channel LED sales growth, these are for the outbreak of the LED lighting market in China to lay a solid foundation. Second, the street market. At the same time, in 2015 China's LED lights market scale will reach 23 billion yuan, up 56% from a year earlier, the market potential is tremendous. LED small spacing as more than 60 inch screen replacement for traditional screen splicing products for LED screen manufacturers bring more than 20 billion yuan of market opportunities. Up the domestic market penetration, will become the powerful Chinese companies in overseas markets for emphasis, products of good quality and experience in overseas sales companies will gain first mover advantage. In the backdrop of the rapid development of industry, the LED industry development present three big changes, to highlight the advantages of mainland companies. First of all, local LED chip and packaging companies in 2014 year-on-year growth in operating income are better than peers in Taiwan area, and the gap is larger, so the mainland and Taiwan LED to the contrasts of power enterprises have been reversed, mainland enterprises with the help of geographic and cost advantage in mainland China lighting the rise of gain more market share, thereby cram into Taiwan counterparts space for development. Second, mainland LED chip manufacturers are rising global influence, in 2015 is expected to add about 74% share of MOCVD equipment from local enterprises, the total output of chip expansion after the mainland leading enterprises can be more than 20% of the global accounted, and the LED chip from the mainland industry market concentration is also improved, 2014 years ago, five major chip manufacturers combined market share accounted for 67%, rose 3% from 2013, the industry monopoly pattern formation. Finally, because the LED packaging and application of industry market concentration is low, the industry competition is intense, so the merger integration will become one of the main ways of industry leading development. Merger integration power LED industry growth in 2014, the domestic LED chip industry increase the intensity of the integration, small businesses are gradually withdraw from. Royal Dutch philips electronics company announced on June 30, 2014, the company's Lumileds LEDs components and auto lighting division merge to form a new company, the two business sales amounted to $1. 9 billion in 2013. On the same day, Chinese Taiwan LED chip leading wafer photoelectric through exchange m&a ladies aureole of electricity, make the latter wafer photoelectric holding subsidiaries. Is expected in 2015, this trend will continue, leading enterprises relying on the technical level, customer resources and the advantages of the scale of production capacity, is expected to win in the competition. Link of the LED chip scale effect, significantly higher requirements for capital investment and technical research and development, small businesses become mergers and reorganization object or exit the industry. Since 2009, some famous LED chip companies such as dalian road, Shanghai sapphire, Fang Daguo exit in the fierce competition. Corresponding, the LED chip leading enterprises will further increase the intensity of expansion, studies have shown that domestic MOCVD is expected to increase 250 units in 2015, mainly in the top of expansion has leading enterprises, the total number of MOCVD will reach about 1500 units. LED chip industry emphasizes the technical strength and scale effect, on this basis, the leading enterprises, market share gradually eroded competitors, competition situation in 2015 is expected to more conducive to the larger LED chip companies. , although the price of chip is still a certain degree of decline, but as the market share concentration, enterprise equipment utilization and product yield increase, leading enterprise profitability is expected to gradually recovered from the trough. After expansion has become the world's leading manufacturers, the layout of compound semiconductor chip fit China's integrated circuit industry development planning and trend of import substitution, three Ann photoelectric worth investors to focus on. White light LED packaging device area leading, results will benefit from the lighting market development of endogenous growth and industry mergers and acquisitions of denotative growth del hon optoelec also worth investors layout; Enjoy high margin in overseas markets, in the domestic sales channels continue to expand the outbreak of the sun will also benefit from the LED lighting industry.